Gold retreats on stronger US dollar, low demand

Gold futures on the COMEX division of the New York Mercantile Exchange closed lower Thursday, snapping a five-day winning streak, as the U.S. dollar rallied and global demand for precious metals dropped.

The most active gold contract for December delivery lost 8 U.S. dollars, or 0.71 percent, to settle at 1,115.60 dollars per ounce.

Gold was put under pressure as the U.S. Dollar Index rose by 0. 2 percent to 96.47 as of 18:29 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.

Gold was put under additional pressure following a report released by the World Gold Council Thursday. The report said gold hit a six-year-low in demand.

Analysts also noted that an increased interest in equities is putting pressure on the precious metal as traders continue to price in the expectation for a U.S. interest rate rise.

Silver for September delivery fell 7.7 cents, or 0.50 percent, to close at 15.399 dollars per ounce. Platinum for October delivery dropped 4.9 dollars, or 0.49 percent, to close at 995.00 dollars per ounce.