Gold Falls on Positive U.S. Factory Report

London (Jan 16)  Gold sank in Wednesday trading as a key survey indicated better-than-expected U.S. manufacturing.

The business condition index of the Federal Reserve Bank of New York’s Empire State Manufacturing Survey jumped to a reading of 12.51 in January. That was up sharply from a reading of 2.22 last month. It also surprised economists who had forecast a reading of 3. The U.S. dollar climbed against other currencies, further weakening gold’s appeal to investors.

Gold futures for February delivery fell 0.6% to $1,238.30 per ounce on Wednesday, according to CME Group. Gold traded as high as $1,244.60 and as low as $1,233.60. Bullion closed in London at $1,241, according to BullionVault.

Silver futures for March delivery slid 0.7%, to $20.13 per ounce. Wednesday’s high for silver was $20.27, while the low was $19.91.