Gold closes at 3-week low amid weak sentiment
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Gold futures on the COMEX Division of the New York Mercantile Exchange on Wednesday further declined, settling at the lowest level in three weeks, as investors vied with each other to liquidate their positions in spite of a weaker dollar.
Market traders noted investors were little disappointed at U.S. consumer prices in October, which rose only 0.2 percent from September. The muted CPI growth further reduced the appeal of gold as an instrument guarding against inflation.
Although the dollar fell on Wednesday amid weaker-than-forecast U.S. economic data, the investors worried that the Ireland debt problem would continue to boost the dollar in the short run. This weighed on the metal market.
Besides, a trader noted that a lot of the funds liquidated their positions as they made an awful lot of money this year and they don't want to risk these profits in a "thin and uneventful" end-of-the-year market.
However, silver gained a little in the day. December silver gained 27.8 cents, or one percent, to 21.51 dollars per ounce, while January platinum declined 4.8 dollars per ounce to 1,640.9 dollars.
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