gold prices pulled back from a multiweek high monday as the u.s. dollar strengthened and investors took profits from the rally at the end of last week. gold for december delivery closed down 0.3% at $1,273.10 a troy ounce on the comex division of the new york mercantile exchange. the wall street journal dollar index, which tracks the greenback against a basket of other currencies, was recently little changed at 88.60 after rising as high as 88.85 earlier in the session. a stronger dollar tends to weigh on gold and other raw materials, which are priced in the u.s. currency and become more expensive for foreign buyers when the dollar rises. investors were also locking in gains after gold prices spiked late friday afternoon on news that the the federal bureau of investigation said it uncovered new evidence in its investigation of democratic presidential candidate hillary clinton <u+2019>s email server. some investors buy gold during times of political turbulence, believing it will hold its value better than other assets. however, <u+201c>these event-driven type rallies rarely last,<u+201d> said george gero, a managing director at rbc capital markets. the prospect of the u.s. federal reserve hiking interest rates in december is also pressuring investor sentiment in gold, which doesn<u+2019>t bear interest and struggles to compete when rates rise. federal-funds futures, used to bet on central-bank policy, on monday showed that investors assigned a 73.3% likelihood of a rate increase in december, up from around 50% in the middle of last month. other precious metals were mixed. silver for december delivery was unchanged at $17.79 a troy ounce, january platinum was down 0.3% at $978.60 a troy ounce, and december palladium was up 0.3% at $618.00 a troy ounce. write to ira iosebashvili at ira.iosebashvili@wsj.com and georgi kantchev at georgi.kantchev@wsj.com
gold prices drop after friday<u+2019>s late-day rally - wsj
georgi kantchev