Gold down slightly on stronger U.S. data

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Wednesday as stronger U.S. data put pressure on the precious metal.

The most active gold contract for February delivery fell 0.4 U.S. dollars, or 0.04 percent, to settle at 1,133.20 dollars per ounce.

Gold was put under pressure as a report released by the U.S.-based National Association of Realtors showed existing home sales increasing to a 5.610 million level, a figure which was in line with expectations, however analysts note that this sales level is one cycle ahead of expectations, and that resale value had increased by 15 percent, a figure which was better-than-expected.

The precious metal was given support as the U.S. Dollar Index fell by 0.24 percent to 103.00 as of 19:30 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.

Additionally, the U.S. Dow Jones Industrial Average fell by 15 points, or 0.08 percent as of 1930 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.

Investors have not yet begun to focus on the long-term outlook for the precious metal, but analysts 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 24 percent for the March meeting.

Silver for March delivery fell 13.8 cents, or 0.86 percent, to close at 15.979 dollars per ounce. Platinum for January delivery dropped 9.6 dollars, or 1.04 percent, to close at 914.40 dollars per ounce. Endit