CHICAGO, gold futures on the COMEX division of the New York Mercantile Exchange fell on Tuesday (02/12/2014) local time (Wednesday morning local time), as the dollar strengthened and oil prices fell back.
The most active gold contract for December delivery fell sharply 18.7 US dollars, or 1.54 percent, to close at 1199.4 dollars per ounce.
Gold fell following the US dollar rose against the yen and the euro. Strengthening of the US dollar was supported by declining oil prices, thus helping to raise the position of the US currency against the currencies of commodity-related.
Crude oil prices fell on Tuesday on fears that the global supply exceeded demand for the Organization of Petroleum Exporting Countries (OPEC) not to cut production at a meeting last week.
Light sweet crude for January delivery fell 2.12 dollars to 66.88 dollars a barrel on the New York Mercantile Exchange.
Some analysts say that the more positive signs from the US economy could lead to a tightening of monetary policy more rapidly in 2015 than previously thought.
The Commerce Department released a report better than expected on Tuesday that showed sales volumes of cars and light trucks made in North America rose by nearly 200,000 to an annual rate of 13.5 million units.
Silver for December delivery lost 23.6 cents, or 1.41 percent, to close at 16.456 dollars per ounce. Platinum for January delivery lost 24.1 US dollars, or 1.94 percent, to close at 1217.5 dollars per ounce.
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