Gold down on stronger US. dollar, equities

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Friday as U.S. equities and the U.S. dollar strengthened.

The most active gold contract for March delivery fell 0.9 U.S. dollars, or 0.07 percent, to settle at 1,235.90 dollars per ounce.

Gold was put under pressure as the U.S. Dollar Index rose by 0.13 percent to 100.80 as of 1845 GMT. 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.

The precious metal was dampened as the U.S. Dow Jones Industrial Average rose by 95.25 points, or 0.47 percent as of 1845 GMT. Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.

U.S. President Donald Trump told reporters after the market's close on Thursday that he would have a major tax announcement to make in the coming weeks, driving investors away from the precious metal as expectations are for the U.S. president to lower corporate and personal taxes, which analysts believe could increase the value of the U.S. dollar and U.S. equities.

Although Trump's tax announcement is looming, investors believe the Fed may raise rates from 0.75 to 1.00 during the May FOMC meeting at the earliest.

According to the CME Group's Fedwatch tool, the current implied probability of a hike from 0.50 to at least 0.75 is at 13 percent at the March meeting and 35 percent for the May meeting.

Silver for March delivery rose 19.2 cents, or 1.08 percent, to close at 17.933 dollars per ounce. Platinum for April delivery fell 10.5 dollars, or 1.03 percent, to close at 1,011.70 dollars per ounce.

Source: Xinhua