Gold Futures Close Below $1,200

New York (Sept 15)  Gold pricing took a moderate hit today with the most active December Comex contract losing $9.40 to be currently fixed at $1,198.80 per ounce. After trading to its highest level this month when gold traded to $1,218 yesterday, a surge in dollar strength today put dramatic pressure on gold pricing. Once again, gold futures closed lower on the week, posting a fractional decline of about one dollar.

As of 4:35 PM Eastern standard time, spot gold is trading at $1,193.80, after subtracting a net decline of $7.10 on the day. Most of the lower pricing today is directly attributable to dollar strength, which took away $5.20 in value. The remaining loss of $1.90 today was a result of selling pressure.

Dollar strength was a direct result of favorable economic data. A Federal Reserve report released today revealed that industrial production rose 0.4% in August. This was above expectations by about 0.10% and marks the third consecutive monthly increase.

The U.S. dollar is currently trading at 94.96, which is a net gain of 44 points on the day (+0.47%). Favorable economic data was highly supportive of the dollar today. As reported in MarketWatch, “The University of Michigan’s consumer sentiment index for September climbed to 100.8, compared with expectations of 97, marking its second-highest reading since 2014.”

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