Gold falls below 1,300 USD per ounce as dollar rallies

Source: Xinhua| 2019-03-15 04:49:35|Editor: yan
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CHICAGO, March 14 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange fell more than one percent on Thursday, back below the 1,300 U.S. dollar level, as the dollar strengthened notably.

The most active gold contract for April delivery dropped 14.20 dollars, or 1.08 percent, to settle at 1,295.10 dollars per ounce, a day after the previous metal rebounded above 1,300 dollars.

The U.S. dollar index, a measure of the greenback against a basket of other major currencies, rose 0.31 percent to 96.77 just before the gold's settlement.

Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, priced in the dollar, becomes more expensive for investors holding other currencies.

Profit taking from recent gains also led to the fall of gold, said analysts.

Meanwhile, investors seemed to have shrugged off the turmoil surrounding the Brexit process, especially after British lawmakers on Wednesday voted to reject any no-deal Brexit.

British lawmakers now seek a delay for the Brexit until June 30, but any extension of the process must get approval from the European Union.

As for other precious metals, silver for May delivery was down 28.5 cents, or 1.84 percent, to close at 15.171 dollars per ounce. Platinum for April delivery was down 14.6 dollars, or 1.73 percent, to settle at 827.10 dollars per ounce.