Gold futures on the COMEX division of the New York Mercantile Exchange settled flat on Wednesday, but moved lower in the ensuing electronic trading as rising stock indexes and a stronger dollar weighed on the safe-haven asset.
The most active gold contract for December delivery closed unchanged at 1,515.70 dollars per ounce, agency reports.
The Dow Jones Industrial Average gained more than 200 points on Wednesday. The S&P 500 and Nasdaq followed Dow’s rise.
When equities go up, investors usually prefer riskier assets such as stocks over safe-haven gold. The U.S. dollar index, a measure of the greenback against a basket of other major currencies, fell slightly in the morning. However, the index went up after the release of minutes from the Federal Reserve’s July meeting, which showed that the U.S. central bank shied away from suggesting series of rate cuts. Rising benchmark stock indexes and a stronger dollar led to the fall of gold in the electronic trading, said market analysts. As for other precious metals, silver for September delivery was up 0.3 cent, or 0.02 percent to close at 17.151 dollars per ounce. Platinum for October delivery was up 5.3 dollars, or 0.62 percent, to settle at 858.10 dollars per ounce.