Gold Futures and Precious Metal

opposite directions: The precious metal was given support as the U.S. Dollar Index fell by 0.12 percent to 99.16 as of 1800 GMT. The index is a measure of the dollar against a basket of major currencies, according to Xinhua China. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors. The most active gold contract for February delivery rose 14.9 U.S. dollars, or 1.35 percent, to settle at 1,120.2 dollars per ounce. Gold was prevented from rising further as the U.S. Dow Jones Industrial Average went up by 1.83 percent as of 1800 GMT. Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains. Analysts believe the market remains unsure of when the next rate hike, from a 0.50 rate to a 0.75 rate, will occur. The Federal Open Market Committee , the policy-setting arm of the U.S. Federal Reserve, began its two-day meeting Tuesday, giving further support to the precious metal, as traders tendered bets that the Fed would signal cautiousness on raising interest rates in the wake of global economic uncertainty. (news.financializer.com). As reported in the news.