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Gold mostly unchanged on weaker U.S. equities

Xinhua, October 22, 2016 Adjust font size:

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Friday as U.S. equities weakened.

The most active gold contract for December delivery rose 0.2 U.S. dollars, or 0.02 percent, to settle at 1,267.70 dollars per ounce.

Low volume and no major economic news was the feature of the day as hold was given slight support as the U.S. Dow Jones Industrial Average fell by 14 points, or 0.08 percent as of 1815 GMT.

Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.

The precious metal was kept from rising any further as the U.S. Dollar Index rose by 0.44 percent to 98.76 as of 1815 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.

Traders appear to be waiting for next week's economic data and Fed speeches, as the PMI Manufacturing Index Flash is due on Monday, along with several Fed speeches. The consumer confidence report and Richmond Fed Manufacturing Index is due Tuesday, the international trade in goods report and new home sales report is due on Wednesday, the durable goods orders and weekly jobless claims report is due on Thursday, and the gross domestic product report is due on Friday.

Since investors are waiting for the release of major data next week, the market' s focus on Friday has been the potential for a Fed rate hike later this year. Investors believe 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 9 percent for the November 2016 meeting, and 70 percent at the December meeting.

Silver for December delivery dropped 5.6 cents, or 0.32 percent, to close at 17.493 dollars per ounce. Platinum for January delivery fell 3.1 dollars, or 0.33 percent, to close at 932.30 dollars per ounce. Endit