2021.10.1918:34:00UTC+00Gold Futures Settle Higher As Dollar Loses Ground

After posting losses in the previous two session, gold futures settled higher on Tuesday, as the dollar lost ground against its major rivals with disappointing U.S. industrial production data easing fears about inflation and tightening of monetary policy.

Weighed down by weak data, bond yields declined and the dollar index slid to a three-week low.

The dollar index dropped to 93.50 in the European session before regaining some lost ground. The index was hovering around 93.70 by 1.30 PM ET, down nearly 0.3% from the previous close.

Gold futures for December ended higher by $4.80 or about 0.3% at $1,770.50 an ounce.

Silver futures for December closed up by $0.619 at $23.883 an ounce, while Copper futures for December settled at $4.7030 per pound, down $0.0225 from the previous close.

A report from the Federal Reserve Monday showed an unexpected steep drop in industrial production in the month of September.

The Fed said industrial production tumbled by 1.3% in September following a revised 0.1% dip in August.

The sharp decline surprised economists, who had expected industrial production to edge up by 0.2% compared to the 0.4% increase originally reported for the previous month.