Gold falls on stronger US dollar

CHICAGO - Gold futures on the Comex division of the New York Mercantile Exchange fell on Thursday as the US dollar strengthened, reported Xinhua.

The most active gold contract for August delivery fell US$4.30, or 0.22 per cent, to close at US$1,917.90 per ounce.

Speaking at a panel discussion at the Bank of Spain's financial-stability conference on Thursday, Federal Reserve Chair Jerome Powell said when it comes to getting the balance right on interest rates, the Federal Reserve isn't quite there yet.

A "strong majority" of Fed policymakers were looking for two more quarter-percentage-point interest rate hikes this year, potentially at the next policy meeting in July, Powell said.

Powell's comments echoed his hawkish remarks in Portugal on Wednesday, triggering market expectations for further rate hikes and dampening gold.

Economic data released Thursday are mixed. The US Commerce Department reported that US economy grew at a 2-per cent annualised pace in the first quarter, well above the previous estimate of 1.3 per cent.

The US Labour Department reported that US applications for jobless claims fell by 26,000 to 239,000 for the week ending June 24.

The National Association of Realtors reported that US pending home sales index fell by 2.7 per cent to 76.5 in May after falling by 0.4 per cent to a revised 78.6 in April.

Silver for September delivery fell 28.60 cents, or 1.24 per cent, to close at US$22.798 per ounce. Platinum for October delivery fell US$18.10, or 1.96 per cent, to close at US$906.80 per ounce. - BERNAMA-XINHUA