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Gold Falls as U.S. Dollar Rises

Gold futures on the COMEX division of the New York Mercantile Exchange settled lower on Monday as the U.S. dollar strengthened.

The most active gold contract for December delivery went down 4.1 dollars, or 0.33 percent, to close at 1,224.60 dollars per ounce.

The U.S. dollar index, a gauge of the greenback against a basket of other major currencies, rose 0.35 percent to 96.00 as of 1657 GMT.

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 using other currencies.

However, the fall of gold was limited by retreating equities.

The Dow Jones Industrial Average went down 122.31 points, or 0.48 percent as of 1707 GMT. When equities post losses, investors may be lured to safe-haven assets, such as gold.

Analysts added that geopolitical tensions surrounding the death of a prominent Saudi journalist inside the kingdom's Istanbul consulate, the difficult Brexit negotiations and Italian budget deficit, would continue to support the gold.

As for other precious metals, silver for December delivery went down 6.3 cents, or 0.43 percent, to close at 14.587 dollars per ounce. Platinum for January 2019 delivery was down 13.5 dollars, or 1.61 percent, to settle at 822.50 dollars per ounce.

(www.chinaview.cn 2018-10-23)