Chicago (Benchmark News) – Gold futures on the COMEX Division of the New York Mercantile Exchange ended lower on Tuesday (11/10/2016), a depressed us dollar exchange rate which indicates strengthening.
The U.S. dollar index climbed 0.84 percent to 97.70 at 17.45 GMT. The index is a measure of the U.S. dollar against a basket of major currencies.
Gold and u.s. dollar usually move in opposite directions, which means that if the US dollar up gold futures would fall because the gold as measured by u.s. dollars, becomes more expensive for investors.
However, gold is prevented from further decline because of weakening in us health sector pushed the Dow Jones Industrial Average Index US down 213 points or 1.17 percent at 17.45 GMT.
Analysts noted that when equities registered a loss then precious metal usually rises, because investors seek assets “safe haven”, while conversely when us equities registered a profit then the precious metal usually go down.
Because there is no significant economic data released on Tuesday, investors focused on the potential for the Federal Reserve to raise interest rates from 0.50 to 0.75 FOMC meeting during December.
According to CME Group Fedwatch tools, current implied probability to raise rates from 0.50 to 0.75 is 10 percent for meetings in November 2016, and 70 percent at a meeting December 2016.
Traders also are waiting for some Fed speeches on Wednesday, along with the release of the treatise Federal open market Committee (FOMC) of the U.S. central bank’s meeting earlier.
In addition, the unemployment claims report will be released on Thursday, and the producer price index and retail sales reports will be released on Friday.
Silver for December delivery down 15 cents, or 0.85 percent, to close at 17.509 u.s. dollars per ounce. Platinum for delivery in January 2017 down 15.6 u.s. dollars, or 1.62 per cent, to close at 949.8 u.s. dollars per ounce…(Red)