CHICAGO, Oct. 17 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange settled lower on Wednesday as the U.S. dollar index climbed sharply.
The most active gold contract for December delivery went down 3.6 dollars, or 0.29 percent, to close at 1227.40 dollars per ounce.
The U.S. dollar index, a gauge of the greenback against a basket of other major currencies, rose 0.41 percent to 95.48 as of 1723 GMT.
Gold and the dollar usually move in opposite directions. When the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors using other currencies.
Gold futures had been supported in the past two sessions by geopolitical tensions surrounding the disappearance of a Saudi journalist in Saudi Arabia's consulate in Istanbul.
Trade disputes between major economic powers and Italy's rising budget deficit, also gave additional support to the precious metal, viewed as safe-haven asset by investors especially during market turbulence.
But a rising U.S. dollar, which was further strengthened after the release of minutes from the Federal Reserve's September monetary policy meeting, pressured the gold futures.
The minutes reaffirmed the Federal Reserve's commitment to more gradual rate hikes, which boosted the dollar. As a result, gold futures extended their decline into electronic trading in the afternoon.
As for other precious metals, silver for December delivery went down 3.8 cents, or 0.26 percent, to close at 14.663 dollars per ounce. Platinum for January 2019 delivery was down 6.1 dollars, or 0.72 percent, to settle at 840.60 dollars per ounce.
