Gold down on stronger U.S. equities, dollar

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

The most active gold contract for December delivery fell 7.1 U.S. dollars, or 0.56 percent, to settle at 1,266.40 dollars per ounce.

U.S. equities are reaching new highs as the market continues to react to the impending presidency of U.S. President-elect Donald Trump. Investors believe that he is likely to cut the corporate income tax and many other taxes, which they believe will provide stability to the market, putting a damper on the precious metal's safe haven demand.

Gold was put under pressure as the U.S. Dow Jones Industrial Average rose by 273 points, or 1.47 percent as of 1750 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 U.S. Dollar Index rose by 0.1 to 98.72 as of 1750 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.

A report released by the U.S. Department of Labor showed initial jobless claims falling by 11,000 to a 254,000 level, two figures which were both better-than-expected and drove safe haven demand for the precious metal down even further as employment is one of the main components of the economy that the U.S. Federal Reserve uses to determine the timing of rate hikes.

Silver for December delivery added 35.9 cents, or 1.95 percent, to close at 18.737 dollars per ounce. Platinum for January delivery dropped 21.1 dollars, or 2.10 percent, to close at 982.20 dollars per ounce. Endit