Gold extends losses as equities rally

0 Comment(s)Print E-mail Xinhua, August 20, 2019
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CHICAGO, Aug. 19 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange extended losses on Monday as stock markets mostly rallied around the world.

The most active gold contract for December delivery went down 12 U.S. dollars, or 0.79 percent, to close at 1,511.60 dollars per ounce. It fell further during the ensuing electronic trading.

On Monday, the Dow Jones Industrial Average, S&P 500 and Nasdaq all rose about one percent. Most stock markets around the world also rallied.

Gold and equities usually move in opposite directions. When the benchmark stock indexes go up, gold futures will fall, as investors will prefer stocks over safe-haven gold amid rising risk appetite.

A stronger dollar also added to pressure. The U.S. dollar index, a gauge of the greenback against a basket of other major currencies, rose 0.11 percent to 98.25 ahead of the gold's settlement.

When the dollar strengthens, gold will fall as the dollar-priced gold becomes more expensive for investors holding other currencies.

As for other precious metals, silver for September delivery was down 18.2 cents, or 1.06 percent to close at 16.94 dollars per ounce. Platinum for October delivery was up 5.3 dollars, or 0.62 percent, to settle at 856.80 dollars per ounce. Enditem

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