Gold drops in anticipation of industrial production data from US

Gold prices on January 18 morning fell by 0.5%, as financial and commodity markets are expecting continued decline in industrial production in the United States, Report informs referring to the auction data.

The price of February futures for gold on the New York Comex exchange fell by $10.1, or 0.53%, to $1,899.9 per troy ounce. March silver futures rose 0.08% to $24.09 an ounce.

US industrial production data will be released later on January 18. According to analysts’ forecasts, the indicator in December decreased by 0.1% compared to November after falling 0.2% a month earlier.

The stronger dollar may also contribute to the decline in the precious metal prices. In particular, in relation to the yen, the US currency grew by more than 2%. A more expensive dollar makes commodities, which include gold, less accessible to holders of other currencies.