Gold down on stronger dollar

Chicago, July 31 (IANS) Gold futures on the COMEX division of the New York Mercantile Exchange fell as the dollar strengthened.

The most active gold contract for December delivery lost $4.6 or 0.42 percent, to settle at 1,088.70 dollar’s per ounce, Xinhua news agency reported.

The US Dollar Index rose by 0.45 percent to 97.60 on Friday. 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.

The rise in the dollar came after a press conference announcing the results of the US Federal Open Market Committee after the market closed on Wednesday. The meeting described US employment rates as “solid.”

Analysts say that the Fed is waiting for the labour market to improve and for inflation to hit the US central bank’s target of two percent before raising rates.

A report released on Thursday by the US department of commerce showed the US GDP increasing by 2.3 percent. Analysts say this figure was slightly lower than expected.

Silver for September delivery lost 4.7 cents, or 0.32 percent, to close at $14.696 per ounce. Platinum for October delivery added $5 or 0.51 percent, to close at $989.90 per ounce.

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