Gold falls to four month low as U.S. dollar strengthens

CHICAGO, Dec. 5 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange fell to four month low on Tuesday as the U.S. dollar index continued to rise.

The most active gold contract for February delivery went down 12.80 dollars, or 1.00 percent, to close at 1,264.90 dollars per ounce.

It was the second consecutive fall of the precious metal after the U.S. Senate passed a tax reform proposal over the weekend.

The U.S. dollar index, a gauge of the greenback against a basket of other major currencies, rose 0.34 percent to 93.40 as of 1916 GMT.

The dollar posted gains against British Pound and euro, due to ongoing uncertainty surrounding the Brexit deal, especially the Irish border issues.

U.S. technology stocks bounced during the morning session, also benefiting from optimism surrounding the tax reform plan. The NASDAQ Composite Index rose 31.50 points, or 0.46 percent to 6806.87 points as of 1830 GMT.

When the U.S. dollar strengthens and stocks post gains, the prices of gold usually go down, as a firmer dollar makes gold less attractive to foreign investors using other currencies while rising equities lure investors to the stock market.

As for other precious metals, silver for March delivery fell 30.5 cents, or 1.86 percent, to close at 16.068 dollars per ounce. Platinum for next January went down 8.5 dollars, or 0.92 percent, to settle at 917.50 dollars per ounce. Enditem