Gold prices in the COMEX division of the New York Mercantile Exchange dropped on Wednesday due to a strengthened U.S. dollar.
The February delivery gold contract fell 4.40 U.S. dollars, or 0.21 percent, to close at 2,047.70 dollars per ounce.
Federal Reserve Bank of Atlanta President Raphael Bostic stated on Tuesday that there is no “urgency” for the Federal Reserve to reduce U.S. interest rates given the strength of the economy.
Bostic also predicted that inflation “is going to come down relatively slowly in the next six months, which means that there’s not going to be urgency for us to start to pull off of our restrictive stance.”
Economic data released on Wednesday further affected gold prices. The Conference Board Consumer Confidence Index increased in December to 110.7, up from a downwardly revised 101.0 in November.
The National Association of Realtors reported that U.S. existing home sales rose 0.8 percent in November from the prior month to a seasonally adjusted annual rate of 3.82 million.
Investors are eagerly anticipating the release of the gross domestic product report due out on Thursday, as well as the November core personal consumption expenditure (PCE) price index, the Federal Reserve’s preferred measure of inflation gauge, due on Friday.
In contrast, silver for March delivery saw a rise of 31.00 cents, or 1.27 percent, to close at 24.631 dollars per ounce. Platinum for January delivery also rose, increasing by 8.20 dollars, or 0.85 percent, to close at 974.00 dollars per ounce.
