Gold Prices Flat, Pressured by Stronger Dollar

By Georgi Kantchev

LONDON--Gold prices was broadly flat Monday in London, pressured by a stronger U.S. dollar in the aftermath of Donald Trump's victory in the U.S. presidential election.

Spot gold was down 0.02% at $1,224.60 a troy ounce in volatile trade as other precious metals fell.

The Wall Street Journal Dollar Index, which weighs the dollar against a basket of other currencies, was up 0.8%. A stronger dollar is bearish for gold, which is priced in the greenback.

"Gold is still facing considerable headwind: the U.S. dollar is continuing to appreciate," said analysts at Commerzbank.

The prospect of the U.S. Federal Reserve hiking interest rates in December is also pressuring investor sentiment in gold, which doesn't bear interest so struggles to compete when rates rise.

Traders in the market for Fed-funds futures, derivatives used to bet on the timing of Fed interest-rate decisions, reflect an 81% probability of a rate rise by December, according to CME Group.

Among other precious metals, silver fell 0.9% to $17.23 an ounce, platinum shed 0.3% to $940.60 an ounce, and palladium fell 1.5% to $674.20 an ounce.

-Write to Georgi Kantchev at [e-mail]

(END) Dow Jones Newswires

November 14, 2016 05:53 ET (10:53 GMT)

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