Gold retreats on stronger US dollar

Chicago: Gold futures on the COMEX division of the New York mercantile exchange closed lower, snapping a five-day winning streak, as the US dollar rallied and global demand for precious metals dropped.

The most active gold contract for December delivery lost $8 (0.71 percent) to settle at $1,115.60 per ounce, reported Xinhua.

Gold was put under pressure as the US dollar index rose by 0.2 percent to 96.47. 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.

Gold was put under additional pressure following a report released by the World Gold Council on Thursday. The report said gold hit a six-year-low in demand.

Analysts said an increased interest in equities is putting pressure on the precious metal as traders continue to price in the expectation for a US interest rate rise.

Platinum for October delivery dropped $4.9 (90.49 percent) to close at $995.00 per ounce.