The chart shows the price of the gold contract for December delivery falling 0.6 percent to 1,765 U.S. dollars per ounce on the New York Mercantile Exchange Oct. 9, 2012. (Xinhua/Lu Zhe)
CHICAGO, Oct. 9 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange fell for the third straight session on Tuesday, as traders worried about the global economy and a stronger U.S. dollar pressured trading.
The most active gold contract for December delivery fell 10.7 dollars, or 0.6 percent, to settle at 1,765 dollars per ounce.
After opening higher, gold turned lower in mid session and ultimately settled near the day's low. The precious metal has now lost a combined 31.5 dollars since last Friday.
Pressuring trading on Tuesday was news that the International Monetary Fund (IMF) revised down its global economic growth forecasts. The IMF now predicts a 2012 growth rate at 3.3 percent, down from the 3.5 percent previously estimated in July. It also cut the 2013 global growth projection to 3.6 percent from 3.9 percent.
Additionally, the international lender said that several eurozone countries including Spain and France would fail to meet the agreed deficit targets, once again highlighting the economic uncertainty in Europe.
In response to the IMF report, investors flocked to the dollar as a safe-haven currency, heaping additional pressure on gold. A higher dollar is a negative factor for commodities, as it makes them more expensive to holders of other currencies.
Outside market conditions were mixed, as the IMF report sent the U.S. stock market into the red, but supportive commodity crude oil rose more than three percent in the session.
Silver for December delivery fell 3.2 cents, or 0.09 percent, to close at 33.985 dollars per ounce.