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CHICAGO, Dec. 9 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange fell on Friday as U.S. economic data and the U.S. dollar showed strength.
The most active gold contract for February delivery fell 10.5 U.S. dollars, or 0.90 percent, to settle at 1,161.90 dollars per ounce.
The U.S. Dollar Index rose by 0.51 to 101.61 as of 1915 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 pressure as a report released by the U.S.-based Conference Board showed consumer sentiment increasing to a 98.0 level during the month of December. This figure was above consensus and in line with the highest level of the expectation range. Analysts note the U.S. election as building expectations of U.S. new economic policies that are favorable to business.
Traders are looking to next week for the Federal Open Market Committee (FOMC) meeting beginning on Tuesday, producer price index, retail sales, industrial production, FOMC press conference on Wednesday, consumer price index, weekly jobless claims, and Philadelphia Fed business outlook survey on Thursday, and the housing starts report on Friday.
Much of the market' s focus remains on the FOMC meeting. Investors believe the Fed may raise rates from 0.50 to 0.75 during the December meeting. According to the CME Group' s Fedwatch tool, the current implied probability of a hike from 0.50 to at least 0.75 is at 97 percent at the December meeting and 97 percent for the February meeting.
Silver for March delivery fell 12.9 cents, or 0.75 percent, to close at 16.967 dollars per ounce. Platinum for January delivery dropped 28.8 dollars, or 3.05 percent, to close at 915.00 dollars per ounce.
