Gold falls as U.S. dollar rebounds

The most active gold contract for February delivery fell 11.8 U.S. dollars, or 0.87 percent, to close at 1,340.30 dollars per ounce.

The U.S. dollar index, a gauge of the greenback against a basket of other major currencies, rose 0.42 percent to 89.42 as of 1806 GMT, following continuous fall especially in the past week.

Gold, priced in dollars, usually trades the opposite direction of the dollar, which means if the dollar rises, the precious metal will fall.

Additional pressure came from U.S. Treasury, with the 10-year bond yield has edged up to reach almost 2.7 percent.

This is the second straight session for gold to post losses, ahead of Federal Reserve Chair Janet Yellen’s last policy meeting on Tuesday and Wednesday. Investors do not expect any surprise out of the meeting, but many will pay attention for clues about future key rate hikes.

As for other precious metals, silver for March delivery fell 31.4 cents, or 1.80 percent, to settle at 17.127 dollars per ounce. Platinum for April lost 5.7 dollars, or 0.56 percent, to close at 1,012.70 dollars per ounce.

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