Gold down on stronger dollar

Chicago: Gold futures on the COMEX division of the New York Mercantile Exchange fell on Friday as the US dollar showed strength.

The most active gold contract for December delivery fell $4.4, or 0.37 percent, to settle at $1,183.10 per ounce, reported Xinhua.

The precious metal came put under pressure as the US Dollar Index, a measure of the dollar against a basket of major currencies, rose by 0.07 to 94.50 as of 18:15 GMT.

Gold and the dollar typically move in opposite directions, which means if the dollar goes up, the greenback-dominated gold futures will became expensive and lose appeal for investors.

A report released by the US Federal Reserve on Friday showed industrial production falling less than expected, putting further downward pressure on gold.

The report showed industrial production fell 0.2 percent in September, while the report also revised up August’s figures from negative 0.4 percent to only negative 0.1 percent. Both figures are above market estimates.

The exact timing of the first rate hikes also hold a sway on gold futures as an increase in the Fed’s interest rate will drive investors away from gold toward assets with a return.

It is widely expected that the first rates hike in nearly 10 years will happen in early 2016.

Silver for September delivery fell 5 cents, or 0.31 percent, to close at $16.114 per ounce. Platinum for January delivery added $16.7, or 1.66 percent, to close at $1,023.70 per ounce.