Gold down on stronger U.S. dollar

By Xu JingUnreguser

CHICAGO, Sept. 23 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange fell on Wednesday as the U.S. dollar strengthened for the third day.

The most active gold contract for December delivery fell 39.2 U.S. dollars, or 2.05 percent, to close at 1,868.4 dollars per ounce.

Gold was under extensive pressure as the rise in the dollar was fueled by weakness in the euro.

Typically when there is chaos in the markets or in the world, investors move to gold as a safe haven. But in this case they moved to the dollar as Federal Reserve officials have hinted in recent days that the central bank might not wait until core inflation averages 2 percent year over year before it begins raising rates, which boosted the dollar and put pressure on gold which is a non-interest bearing asset.

A report released on Wednesday by Markit showed that its manufacturing purchasing managers index (PMI) rose to 53.5 in August, indicating improving economic conditions.

Gold was also under pressure as U.S. equities and stock market indexes fell around the globe.

Silver for December delivery fell 1.418 dollars, or 5.78 percent, to close at 23.105 dollars per ounce. Platinum for October delivery fell 14.4 dollars, or 1.68 percent, to close at 843 dollars per ounce.

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