Gold closes in red on stock market gains

Gold prices closed in the red today, Oct. 16, on stock market gains as investors parsed the current geopolitical risks and the possibility of expanding the scope of the burgeoning Middle East tensions.

Bullion for December delivery retreated 0.35%, or $7.20, to finish at $1,934.30 per ounce.

The yellow metal's losses came despite the 0.35% decline in the US dollar index, which measures the performance of the US currency against a basket of six major currencies, to 106.29 points at 08:40 pm Makkah time.

US stocks remained broadly higher during today’s trading. The Dow Jones Index gained more than 300 points, supported by the positive results of companies’ business activity.

In a note today, Ole Hansen, head of commodity strategy at Saxo Bank, said, “Gold is holding up well because we still have a lot of uncertainty related to the Middle East and the potential for that to evolve into something very serious.”