Gold falls sharply as U.S. dollar, equities rally

Source: Xinhua| 2019-06-11 03:02:30|Editor: Mu Xuequan
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CHICAGO, June 10 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange dropped more than 1 percent on Monday, as the U.S. dollar strengthened and equities rose significantly.

The most active gold contract for August delivery went down 16.8 U.S. dollars, or 1.25 percent, to settle at 1,329.30 dollars per ounce. It's the first loss in nine straight sessions.

The U.S. dollar index, a measure of the greenback against a basket of other major currencies, rose 0.26 percent to 96.80 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.

Meanwhile, the Wall Street stock benchmarks rallied notably amid lifted market mood after the United States reached an agreement with Mexico on immigration issues that allowed the country to avoid U.S. tariffs.

The Dow Jones Industrial Average, S&P 500 and Nasdaq all jumped on Monday.

When equities post gains, the precious metal usually goes down, as investors are not necessarily looking for a safe haven, such as gold.

As for other precious metals, silver for July delivery went down 39.2 cents, or 2.61 to close at 14.639 dollars per ounce. The July Platinum declined 0.90 dollars, or 0.11 percent, to settle at 805.20 dollars per ounce.