Gold Settles Higher, But Faces Dollar Pressure

Gold futures for December delivery finished marginally higher, but faced some pressure late in Tuesday's trade as the dollar gained momentum, putting pressure on the precious metal. Gold settled at up $1.30, or less than 0.1%, at $1,090.70 an ounce. The U.S. Dollar Index , which is a measure of the buck against a basket of six rival currencies, was trading at 97.6310, up 0.2% and moving higher. The dollar ticked up after Federal Reserve Bank of Atlanta President Dennis Lockhart on Tuesday afternoon said the first rate hike in nearly a decade would be "appropriate" as soon as September. Lockhart's comments came as gold prices were settling in afternoon trade The Atlanta Fed president is the second Fed official to come out in favor of a rate hike in September. St. Louis Fed President James Bullard also said in an interview with The Wall Street Journal on Monday that he was in favor of a hike after the Sept. meeting.