Equityworld Futures : October 21, GOLD PRICE, precious metals Strengthened Dollar Dims

Equityworld Futures-Gold Futures on the COMEX Division of the New York Mercantile Exchange today opened the weakened by 1 points or 0.08% to as low as US $ 1,260 .50 per ounce tray.

The weakening gold price continues until 22 pm GMT, Spot down 2.60 points or 0.21% to as low as US $ 1.264 per tray,90 ounce. The price movement of gold today is estimated to range from US $ 1,207 costs US $ 1,414 .40 per ounce tray. The drop in gold prices depressed following the strengthening of the US dollar index since Netanyahu's statements from officials of the Federal Reserve about interest rates hike plan reference the US as well as the weakening of the euro.

 Meanwhile, at the close yesterday, oil prices ended up on Wednesday (Thursday morning EDT), because the United States economic data showed the weakening. The most active gold contract for December delivery increased by seven u.s. dollars, or 0.55%, being settled at 1,269.9 u.s. dollars per ounce.

Gold gained support after data "housing starts" (a newly built home) of the U.S. Department of Commerce showed a decrease of 9.0 percent to an annual rate of 1.047 million, worse than expected and lower than the lowest end of the range of consensus. Analysts noted that house building in the United States are at the lowest level in 18 months, and this report sends investors into a "safe haven" assets in precious metals.

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Despite weakening in u.s. economic data, the advantages of precious metals is restricted by the US dollar and us equities market. The U.S. dollar index climbed 0.05 percent to 97.93 at 18:45 GMT. The index is a measure of the dollar against a basket of major currencies.

Gold and the dollar usually move in opposite directions, which means if the dollar rises then gold futures will fall, because gold is measured by the dollars become more expensive for investors. Meanwhile, the index of the U.S. Dow Jones Industrial Average rose 66 points or 0.36 per cent at 18:45 GMT. Analysts noted that when equities registered a loss, precious metals usually rises, as investors seek a safe place.

Conversely, when us equities registered a profit then the precious metal usually goes down. Investors also are awaiting the release of weekly unemployment claims, the sale of "existing home" (a House that is already so) and the Philadelphia Fed's business prospects Survey on Thursday, and investors noted that unless the main attenuation in the upcoming data, they believe the Fed will raise interest rates from 0.50 to 0.75 FOMC meeting during December. According to CME Group Fedwatch tools, current implied probability to raise interest rates from 0.50 to 0.75 was at seven percent for the November meeting of 2016, and 65 percent at a meeting December 2016. Analysts believe the Fed intended to absorb approximately 2.5 trillion u.s. dollars of funds from banking excess reserves because the U.S. economy continues to recover. Banks become more risk-taking in the economy are "bullish", and as a result, potentially releasing some of their excess reserves, flooding the economy with cash causing inflation.

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