Gold futures fall on rates hike expectations

CHICAGO, Feb. 6 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange settled lower Tuesday, as investors focused on expectations for higher U.S. interest rates.

The most active gold contract for April delivery dropped 7 U.S. dollars, or 0.52 percent, to close at 1,329.5 dollars per ounce.

Markets had been anticipating up to four U.S. interest rate hikes this year. Higher interest rates make gold a less attractive investment because it pays no interest.

Strength in the dollar also pressured dollar-priced gold. The U.S. dollar Index rose to 89.60, up less than 0.1 percent, after hitting three-year lows last week.

Because most commodities are priced in dollars, strength in the currency can create a headwind for assets like gold, detracting from its appeal among buyers using weaker currencies.

As for other precious metals, silver for March delivery went down 9.1 cents, or 0.55 percent, to settle at 16.58 dollars per ounce. Platinum for April fell 1.2 dollars, or 0.12 percent, to close at 994.3 dollars per ounce. Enditem