• The most active gold contract for February delivery fell 0.4 U.S. dollars, or 0.04 percent, to settle at 1,133.20 dollars per ounce.
• Gold was put under pressure as a report released by the U.S.-based National Association of Realtors showed existing home sales increasing to a 5.610 million level, a figure which was in line with expectations, however analysts note that this sales level is one cycle ahead of expectations, and that resale value had increased by 15 percent, a figure which was better-than-expected.
• The precious metal was given support as the U.S. Dollar Index fell by 0.24 percent to 103.00 as of 19:30 GMT. The index is a measure of the dollar against a basket of major currencies. 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.
• Additionally, the U.S. Dow Jones Industrial Average fell by 15 points, or 0.08 percent as of 1930 GMT. Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.
• Investors have not yet begun to focus on the long-term outlook for the precious metal, but analysts believe the Fed may raise rates from 0.75 to 1.00 during the March FOMC meeting at the earliest. According to the CME Group's Fedwatch tool, the current implied probability of a hike from 0.50 to at least 0.75 is at 4 percent at the February meeting and 24 percent for the March meeting.
• Gold is getting some support from moves in the wider markets, Commerzbank analyst Carsten Fritsch said. "The U.S. dollar is slightly weaker and U.S. bond yields are slightly lower as well," he said.
• "Looking ahead, we think that there is a risk that the price of gold might fall further in the coming months as the Fed hikes rates more aggressively in response to some of Trump's more inflationary policies," Capital Economics said in a note.
• "That said, we see gold recovering over the medium term, as demand for inflation hedges picks up and ongoing geopolitical uncertainty ensures that safe havens remain well supported."
• Hefty outflows from gold-backed exchange-traded funds of late have been pressuring gold, HSBC said in a note. "Declines of 300,000 ounces reported Monday night are the latest in more than a month of consecutive gold ETF outflows," it said. "The GLD, the world's largest gold ETF, has fallen 13 percent to 26.6 million ounces since the U.S. November elections."
Reference: Reuters, Xinhua
Thai
Eng