Gold prices down in US exchange

Gold futures went down on the COMEX division of the New York Mercantile Exchange. 

The most active gold contract for December delivery fell $15.3 (1.32 per cent) to settle at $1,138.30 per ounce, reported Xinhua.

Gold was put under pressure as US and world equities rose on Tuesday after China cut interest rates by 0.25 points to 4.6 per cent.

This move stabilised US and world equities, giving investors the confidence to move away from gold as safe haven.

The metal was put under additional pressure as the US Department of Commerce released a report showing new home sales increasing by 5.4 per cent to an annual pace of 507,000 units, which was better than expected.

Gold was also put under pressure as the US Dollar Index rose by 1.2 per cent to 94.54.

The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors holding other currencies.

Silver for September delivery fell 15.2 cents (1.03 per cent) to close at $14.61 per ounce.

Platinum for October delivery dropped $14.8 (1.49 per cent) to close at $976.70 per ounce.