Gold price down despite weakening US dollar

Chicago (Aug 24)   Gold futures on the COMEX division of the New York Mercantile Exchange fell on Monday following a slump in other metals, despite weakening U.S. dollar.

The most active gold contract for December delivery fell 6 U.S. dollars, or 0.52 percent, to settle at 1,153.60 dollars per ounce.

The precious metal was put under pressure as weakness in silver and platinum dragged down gold along with them. This is coming despite an extreme drop in U.S. equities, which narrowed their morning losses.

The U.S. Dollar gave support to gold, preventing it from falling further, as the U.S. Dollar Index fell by 1.27 percent to 93.58 as of 18:27 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.

Silver for September delivery lost 53.9 cents, or 3.52 percent, to close at 14.762 dollars per ounce. Platinum for October delivery dropped 35.6 dollars, or 3.47 percent, to close at 991.50 dollars per ounce.

Source: xinhuanet