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International Gold Down On Technical Trading, Positive US Data

By Super
|

Chicago, Nov 3 (IANS) Gold futures on the COMEX division of the New York Mercantile Exchange fell on Monday as technical trading and positive US data weighed on the precious metal.

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The most active gold contract for December delivery fell $5.5 (0.48 percent) to settle at $1,135.90 per ounce, Xinhua reported.

Gold Down On Technical Trading, Positive US Data
 

The precious metal was put under pressure as the Institute for Supply Management on Monday said the October PMI registered 50.1 percent, a decrease from the September reading of 50.2 percent, but above market expectations of 50.0 percent.

Gold was further weighed as the US Department of Commerce said the Purchasing Managers' Manufacturing Index (PMI) rose to 54.1, which is the strongest reading since April 2015.

The positive data is fuelling speculation about possibility for the US Federal Reserve to raise its interest rates during the December Federal Open Market Committee meeting.

The CME Group's Fedwatch tool puts the current odds of a rate hike at 47 percent.

An increase in the Fed's interest rate drives investors away from gold and towards assets with a return, as the precious metal bears no interest.

Expectations were originally for a delay in the rate hike until 2016. There has not been an increase in the Fed's interest rate since June 2006, before the beginning of the American financial crisis.

Silver for December delivery fell 15.9 cents (1.02 percent) to close at $15.408 per ounce.

Platinum for January delivery dropped $10.7 (1.08 percent) to close at $978.40 per ounce.

Read more about: gold dollar us data
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