Gold futures on the COMEX division of the New York Mercantile Exchange settled lower on Thursday, giving up earlier gains as the U.S. dollar strengthened.
The most active gold contract for August delivery went down 8.90 U.S. dollars, or 0.63 percent, to close at 1,414.70 dollars per ounce, agency reports.The U.S. dollar index, a measure of the greenback against a basket of other major currencies, rose 0.16 percent to 97.88 shortly before gold’s settlement.
When the dollar rises, gold futures usually fall, as dollar-priced gold becomes more expensive for investors holding other currencies.In a related development, the European Central Bank (ECB) on Thursday kept key interest rates for the euro area unchanged but revised forward guidance to open doors for possible monetary policy easing.
ECB’s move led to concerns among investors that the U.S. Federal Reservemay also take a less aggressive approach when they decide on key interest rate cut next week. Meanwhile, the U.S. 10-year Treasury yields rose to 2.076 percent on Thursday, adding pressure on gold.
As for other precious metals, silver for September delivery was down 21.5 cents, or 1.29 percent to close at 16.411 dollars per ounce. Platinum for October delivery was down 7.10 dollars, or 0.81 percent, to settle at 874.00 dollars per ounce.
