Gold futures fall on stronger greenback, rates hike expectation

CHICAGO, May 31 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange closed lower on Thursday, as the U.S. dollar went stronger and investors widely expected the Federal Reverse to raise interest rates next month.

The most active gold contract for August delivery went down 1.8 dollars, or 0.14 percent, to close at 1,304.7 dollars per ounce.

Prices for the haven metal had initially turned a bit lower early morning when a round of released economic data did little to sway expectations that Federal Reserve will raise interest rates next month.

Although it slipped 0.1 percent, the U.S. dollar kept a strong trend most of the day. The U.S. dollar index, which measures the buck against six rivals, went up 0.3 percent to 94.14 as of 1730 GMT.

Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall.

As for other precious metals, silver for July delivery dropped 8.6 cents, or 0.52 percent, to settle at 16.458 dollars per ounce. Platinum for July added 1.6 dollars, or 0.18 percent, to close at 910.1 dollars per ounce. Enditem