Gold prices fell to their weakest level in nearly five months Tuesday, as the dollar rose.
Gold for February delivery was recently down 0.6% to $1,240 a troy ounce on the Comex division of the New York Mercantile Exchange, the lowest level since mid-July.
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The Wall Street Journal Dollar Index rose 0.2% to 87.46, pressuring gold, which is priced in the U.S. currency and becomes less affordable to overseas buyers when the dollar appreciates.
Some investors are also getting out of the metal before the Federal Reserve concludes its monetary policy meeting Wednesday. Some analysts believe the economy could get a boost if Republican lawmakers succeed in passing sweeping tax cuts in coming weeks, pushing the Fed to raise rates at a faster pace next year.
Higher rates tend to weigh on gold, which struggles to compete with yield-bearing assets when borrowing costs rise.
At the same time, "the absence of geopolitical news and the continuous momentum of the equity and crypto-currency market have pushed enthusiasm for gold to the sidelines," analysts at Kitco Metals said in a note to clients.
In base metals, copper for March delivery was up 0.2% at $3.0185 a pound.
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(END) Dow Jones Newswires
December 12, 2017 13:24 ET (18:24 GMT)