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CHICAGO, Nov. 22 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose on Tuesday on a continued technical bounce, despite a stronger U.S. dollar and stronger U.S. equities.
The most active gold contract for December delivery rose 1.4 U.S. dollars, or 0.12 percent, to settle at 1,211.20 dollars per ounce.
Gold continued its technical bounce after reaching record low levels, but even this bounce was limited as the U.S. Dollar Index rose by 0.2 percent to 101.08 as of 1715 GMT.
The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.
The precious metal was put under further pressure as the U.S. Dow Jones Industrial Average rose by 43.97 points, or 0.23 percent as of 1715 GMT, touching above the 19,000 level for the first time. Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.
A report released by the U.S.-based National Association of Realtors released on Tuesday put pressure on the precious metal as it showed existing home sales increasing by 2 percent to a 5.6 million level.
Analysts note that this is the highest reading of this measure since February 2007, and this was a much higher-than-expected reading of this measure, with single family home sales increasing by 2.3 percent.
Traders are looking to reports due later in the week for hints on the Fed' s thinking. The durable goods, jobless claims, PMI Marketing Flash reports are due on Wednesday because the markets are closed on Thursday for Thanksgiving, and the international trade report is due Friday.
Investors will look to these reports for more hints, but as of Tuesday, believe the Fed may raise rates from 0.50 to 0.75 during the December FOMC meeting. According to the CME Group's Fedwatch tool, the current implied probability of a hike from 0.50 to at least 0.75 is at 94 percent at the December meeting and 94 percent for the February meeting.
Silver for December delivery rose 11.1 cents, or 0.67 percent, to close at 16.632 dollars per ounce. Platinum for January delivery added 6.5 dollars, or 0.69 percent, to close at 943 dollars per ounce.
