Off the wire
• 1st LD Writethru: U.S. gov't contractor arrested for alleged classified code theft  • Iran dismisses UN rights report as "invalid"  • Austrian FM hopes for softer stance on asylum intake from hardline EU states  • Southern African countries need 2.1 bln USD to combat drought: official  • Afghanistan given 15.2 bln USD in aid for 2017-2020  • British FTSE 100 decreases 0.58 pct on Wednesday  • CITES meeting hailed as "ground-breaking"  • U.S. NSA contractor arrested for alleged classified code theft: report  • Death toll in Ukraine's alcohol poisoning surpasses 50  • Chinese company sue Dutch retailers for copy product  
You are here: 　 Home

Gold down on stronger U.S. data

Xinhua, October 6, 2016 Adjust font size:

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Wednesday as strong U.S. data put pressure on gold.

The most active gold contract for December delivery fell 1.1 U.S. dollars, or 0.09 percent, to settle at 1,268.6 dollars per ounce.

A report released by the U.S.-based Institute for Supply Management on Wednesday showed its composite index increasing to a much-better-than-expected 57.1. Analysts note exceptional strength in the new orders measure, which increased by 9 points to 60, along with employment increasing by 6.5 points to 57.2, which investors will see as positive for employment, possibly offsetting the weaker-than-expected ADP measure.

The precious metal was put under pressure as the U.S. Department of Commerce also released a report on Wednesday showing factory orders increasing by 0.2 percent during the month of August. Analysts note that this reading was within the consensus range, but still better than expected as core capital good orders increased by 0.9 percent.

All of the U.S. economic data released on Wednesday has not significantly altered investors' belief the Fed may raise rates from 0.50 to 0.75 during the December FOMC meeting.

According to the CME Group's Fedwatch tool, the current implied probability of a hike from 0.50 to 0.75 is at 17 percent for the November 2016 meeting, and 64 percent at the December meeting.

Gold was given slight support as the U.S. dollar fell slightly on a technical bounce after gaining 0.4 percent on Tuesday in the wake of Brexit news. The U.S. Dollar Index fell by 0.06 to 96.09 as of 1745 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.

Silver for December delivery dropped 8 cents, or 0.45 percent, to close at 17.695 dollars per ounce. Platinum for 2017 January delivery fell 13.9 dollars, or 1.4 percent, to close at 976.6 dollars per ounce. Endit