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Gold Falls on Fed Minutes, Higher Dollar
Jul 13,2012 09:50CST
industry news
Source:SMM
Gold futures on the COMEX division of the New York Mercantile Exchange fell on Thursday.

CHICAGO, July 12 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange fell on Thursday, as traders were disappointed by the latest Fed policy meeting minutes and a higher U.S. dollar pressured the market.

The most active gold contract for August delivery lost 10.4 dollars, or 0.66 percent, to settle at 1,565.3 dollars per ounce.

Gold fell for the third straight day, as traders digested the reluctance of the U.S. Federal Reserve to introduce more quantitative easing measures in the near future.

Thursday was the first opportunity for gold investors to act following the Wednesday afternoon release of the Fed's June meeting minutes.

According to the minutes, only a few Fed officials favored implementing more economic stimulus measures.

More quantitative easing would have supported gold, as the precious metal gains on fears of inflation.

Therefore, the fact that the Fed is not likely to act in the near future sent gold down on Thursday.

Outside market forces were also largely negative, as the session saw a climb in the U.S. dollar. A stronger greenback is a negative factor for commodities, as it makes them more expensive to holders of other currencies.

Silver for September delivery gained 13.8 cents, or 0.51 percent, to close at 27.161 dollars per ounce.

 

Gold futures

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