• Gold futures on the COMEX division of the New York Mercantile Exchange fell on Thursday as the U.S. dollar showed strength.
• The most active gold contract for February delivery fell 8 U.S. dollars, or 0.67 percent, to settle at1,189.80 dollars per ounce.
• Gold has fallen to a two-week low at $US1,185.15, its lowest since January 11, as the US dollar firms, US Treasury bond yields rise and equity markets rally.
• Silver for March delivery fell 13 cents, or 0.77 percent, to close at 16.85 dollars per ounce.
• The U.S. Dollar Index rose by 0.48 percent to 100.40 as of 18:00 GMT. The index is a measure of the dollar against a basket of major currencies.
• “We suspect that gold could come under further pressure again on Thursday as the follow-through from the US stock rally reverberates through into other global markets," INTL FCStone said in a note.
• Investors abandoning gold can be seen in the holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, which fell 0.6 per cent to 799.07 tonnes on Wednesday.
• Also undermining sentiment was weak physical demand in India due to higher prices, while Chinese demand is weaker ahead of the Lunar New Year holiday, traders said.
• Investors will be carefully monitoring the February Federal Open Market Committee (FOMC) meeting scheduled for next week for hints on when to expect the next rate hike.
• Investors 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 25 percent for the March meeting.
• China market will be closed until 2nd Feb due to Chinese New Year.
Reference: Xinhua, Business News
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