Gold falls on stronger U.S. dollar

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Thursday as the U.S. dollar strengthened.

The most active gold contract for December delivery fell 2.4 U.S. dollars, or 0.19 percent, to settle at 1,269.5 dollars per ounce.

The precious metal was put under pressure as the European Central Bank announced on Thursday that they would leave their monetary policy unchanged, a move which gave support to the U.S. Dollar Index, which rose by 0.45 percent to 98.29 as of 1815 GMT.

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.

Gold was put under pressure as a report released by the U.S.-based National Association of Realtors showed existing home sales increasing by 3.2 percent to a 5.470 million rate, a figure which was much better than expected.

Analysts note that this is the strongest report since February 2007, and likely put pressure on the precious metal, dampening its safe haven demand.

The Philadelphia Federal Reserve's Business Outlook Survey released on Thursday also put pressure on the precious metal as its General Business Conditions Index rose to a 9.7 level, a figure which analysts note was better-than-expected.

Analysts note that although there are weaknesses in the report, there is strength in the new orders measure, which predicts strength for the manufacturing sector later this year.

Silver for December delivery dropped 11.4 cents, or 0.65 percent, to close at 17.549 dollars per ounce. Platinum for 2017 January delivery fell 8.1 dollars, or 0.86 percent, to close at 935.40 dollars per ounce. Endi