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Gold Prices Depressed U.s. Economic Data

Chicago (Benchmark News) – Gold futures on the COMEX Division of the New York Mercantile Exchange ended slightly lower on Wednesday(21/12/2016), because of the U.S. economic data gives a much stronger pressure on precious metals.

The most active gold contract for February delivery was down U.S. dollars 0.4, or 0.04 cent, became settled in the 1,133.20 u.s. dollars per ounce.

Gold put under pressure because of a report released by the National Association Realtors (NAR) based in the U.S. showed home sales improved to levels 5.61 million units, a figure that corresponds to expectations.

But analysts noted that this level of sales is one of the more cyclical than expected, and that the resale value has increased by 15 percent, the figures are better than expected.

Precious metals gained support when the U.S. dollar index down 0.24 per cent to 103.00 at 19.30 GMT. The index is a measure of the dollar against a basket of major currencies.

Gold and the dollar usually move in opposite directions, which means if the dollar goes down then gold futures will rise, as gold as measured by the dollar becomes cheaper for investors.

In addition, the U.S. Dow Jones Industrial Average was down 15 points, or 0.08 percent at 19.30 GMT. Analysts noted that when equities registered a loss then precious metal usually rises, as investors seek a safe place.

Meanwhile, on the contrary when us equities registered a profit then the precious metal usually go down.

Investors have not yet begun to focus on the long term prospects for precious metals, but analysts believe the Fed will raise interest rates from 0.75 to 1.00 during meetings the FOMC March FOMC.

According to CME Group Fedwatch tools, current implied probability to raise rates from 0.75 to 1.00 is at least four percent at a meeting of February and 24 percent for March.

Silver for March delivery dropped 13.8 cents, or 0.86 percent, to close at 15.979 u.s. dollars per ounce. Platinum for January delivery dropped 9.6 u.s. dollars, or 1.04 percent, to close at 914.40 u.s. dollars per ounce…(Red)

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