Gold down on stronger U.S. equities, dollar

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Tuesday as the U.S. dollar and U.S. equities showed extensive strength.

The most active gold contract for February delivery fell 9.1 U.S. dollars, or 0.80 percent, to settle at 1,133.60 dollars per ounce.

U.S. equities neared a record levels, showing extensive strength putting the precious metal under pressure. Although the U.S. Dow Jones Industrial Average (DJIA) did not reach a record 20,000 level, traders spent the day focused on strength in U.S. equities, moving them away from gold's safe haven properties.

The DJIA rose by 85 points, or 0.43 percent as of 1800 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.

Gold was put under pressure as the U.S Dollar Index rose by 0.14 percent to 103.27 as of 1800 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.

With the U.S. Federal Reserve's rate hike just passed, investors believe the Fed may raise rates from 0.75 to 1.00 during the March FOMC meeting at the earliest. 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 4 percent at the February meeting and 21 percent for the March meeting.

Silver for March delivery rose 2.8 cents, or 0.17 percent, to close at 16.117 dollars per ounce.

Platinum for January delivery added 6.7 dollars, or 0.73 percent, to close at 924.00 dollars per ounce. Endit