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Gold down ahead of Fed meeting

Xinhua, December 6, 2016 Adjust font size:

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Monday on continued rate hike talk.

The most active gold contract for February delivery fell 1.3 U.S. dollars, or 0.11 percent, to settle at 1,176.50 dollars per ounce.

Gold was put under further pressure as New York Fed President William Dudley told a New York City audience at an Association for a Better New York event that he would support gradual hikes as he believes the U.S. Federal Reserve is close to reaching its dual mandate of controlling inflation and promoting employment. 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 at least 0.75 is at 93 percent at the December meeting and 93 percent for the February meeting.

A report released by the U.S.-based Institute for Supply Management showed its key non-manufacturing index increasing to a 57.2 level during the month of July, a figure which was better than expected and above the highest level of the consensus range.

Analysts note strength in new orders and export orders that further boosted investors' confidence, putting pressure on the precious metal.

Traders are looking to the week ahead for the international trade report on Tuesday, the job openings and labor turnover survey on Wednesday, the weekly jobless claims report on Thursday, and the consumer sentiment report on Friday.

Silver for March delivery added 6.7 cents, or 0.40 percent, to close at 16.899 dollars per ounce. Platinum for January delivery dropped 5.9 dollars, or 0.63 percent, to close at 938.60 dollars per ounce. Enditem