Gold down on stronger US dollar

Chicago, Oct 20: Gold futures on the COMEX division of the New York Mercantile Exchange fell on Monday as the US Dollar showed strength.

The most active gold contract for December delivery lost $10.3, or 0.87 percent, to settle at $1,172.80 per ounce, reported Xinhua.

The precious metal was put under pressure as the US Dollar Index rose on Monday. 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 US dollar, becomes more expensive for investors.

Gold was put under further pressure as a report released by the National Association of Home Builders showed its Housing Market Index rising to 64 in October. Analysts noted this is the highest reading of this measure since 2005. This report may also raise expectations for the housing starts report due out on Tuesday.

IANS