Gold up on Turkey coup, despite stronger U.S. dollar

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Tuesday as investors weighed the failed Turkey coup against a stronger U.S. dollar.

The most active gold contract for August delivery rose 3 U.S. dollars, or 0.23 percent, to settle at 1,332.30 dollars per ounce.

The precious metal was given support as investors continued to digest the news related to the failed coup in Turkey, which was a sign of destabilization in the region and drove investors to the precious metal as a safe haven.

Gold was prevented from rising further as the U.S. Dollar Index rose by 0.55 percent to 97.08 as of 18:15 GMT. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.

The precious metal was put under further pressure as a report released by the U.S. Department of Commerce on Tuesday showed housing starts increasing by 4.8 percent to 1.189 million during the month of June, which analysts note is on the high end of the consensus range.

Traders are waiting for the release of the weekly jobless claims report, Philadelphia Fed Business Outlook Survey, and existing home sales report on Thursday, along with the PMI Manufacturing Index Flash on Friday. The Federal Open Market Committee meeting is also scheduled for next week, and traders will be watching that very closely for the U.S. central bank's reaction to recent terrorist attacks in France and the United States, along with the failed coup in Turkey.

Silver for September delivery fell 6.8 cents, or 0.34 percent, to close at 20.007 dollars per ounce. Platinum for October delivery dropped 3 dollars, or 0.27 percent, to close at 1,098.60 dollars per ounce. Enditem