Equity world-Gold futures on the COMEX division of the New York Mercantile Exchange ended lower on Tuesday (Wednesday morning GMT), as the US dollar rebounded or “rebound” after falling sharply on Monday (5/12).
The most active gold contract for February delivery dropped 6.4 dollars, or 0.54 percent, to 1170.10 dollars per ounce.
Strength in the US dollar put pressure on gold, as the US dollar index, which measures the dollar against a basket of major currencies, rose 0.35 percent to 100.51 at 18:00 GMT.
Gold and the dollar usually move in opposite directions, which means that if the dollar will rise, gold futures fell, because gold is measured in dollars more expensive for investors.
Traders also carefully monitor the situation in Italy continues to grow. Investors fear the possibility of Italy out of the European Union, which may destabilize the European Union and as a result provide support for gold.
But latest information has indicated that although the Italian prime minister to resign, there are no other signs that the country will come out of the EU.
Gold got support when a report released by the US Commerce Department on Tuesday (6/12) showed that the US international trade deficit rose to negative 42.6 billion dollars, a figure that analysts note included a 1.8 percent fall in exports. This report supports gold as a weakening US exports does not bode well for the strength of the US economy.
Implied probability for a Fed rate hike at the next FOMC meeting was relatively the same compared to last week. Investors believe the Fed will raise interest rates from 0.50 to 0.75 during the December FOMC meeting.
According Fedwatch tool CME Group, the implied probability at this time to raise interest rates from 0.50 to 0.75 is at least 94 percent at a meeting in December and 94 percent for the February meeting.
Silver for March delivery fell 8.9 cents, or 0.53 percent, to 16.81 dollars per ounce. Platinum for January delivery dropped 2.9 dollars, or 0.31 percent, to close at 935.70 dollars per ounce,