Gold falls as U.S. dollar rebounds

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Wednesday as the U.S. dollar rebounded.

The most active gold contract for June delivery fell 10.7 U.S. dollars, or 0.83 percent, to settle at 1,283.40 dollars per ounce.

After several days of losses due to U.S. presidential statements and geopolitical worries, the U.S. Dollar Index rose by 0.24 percent to 99.74 as of 1900 GMT. The index is a measure of the dollar against a basket of other 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.

Gold was prevented from falling further as the U.S. Dow Jones Industrial Average fell by 109.63 points, or 0.53 percent, as of 1900 GMT. Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven.

Investors are also carefully monitoring statements made by U.S. Federal Reserve members in anticipation of the next possible rate hike.

The latest information indicates that many investors believe the Fed may raise rates from 1.00 to 1.25 during its June meeting.

Silver for May delivery fell 11 cents, or 0.60 percent, to close at 18.162 dollars per ounce. Platinum for July delivery dropped 8.3 dollars, or 0.85 percent, to close at 970.30 dollars per ounce. Endit