Gold price falls on positive US data

New York (Aug 15)  Gold futures on the COMEX division of the New York Mercantile Exchange fell Friday due to positive US data.

The most active gold contract for December delivery fell $2.9, or 0.26 percent, to settle at $1,112.70 per ounce, reported Xinhua.

Gold was put under pressure as the US Federal Reserve's Industrial Production report released on Friday showed a 10.6 percent increase in motor vehicle production.

Analysts say this contributed to an increase in the industrial production which rose 0.6 percent in July. The same analysts note that the manufacturing component also jumped 0.8 percent. This was better than expected and put pressure on gold.

The precious metal was put under additional pressure as a report released on Friday by the US Department of Labour showed the Producer Price Index increasing by 0.2 percent while the yearly change is negative 0.8 percent. Analysts note that excluding food and energy, prices rose 0.3 percent but the year-on-year rate slowed to plus 0.6 percent.

Silver for September delivery dropped 18.6 cents, or 1.21 percent, to close at $15.213 per ounce. Platinum for October delivery shed $1, or 0.10 percent, to close at $994.00 per ounce.

Source: Business-Standard