Gold falls on stronger dollar

Gold futures on the COMEX division of the New York Mercantile Exchange fell Wednesday as U.S. dollar strengthened and the inflationary report was upbeat.

The most active gold contract for December delivery fell 6.2 dollars, or 0.5 percent, to settle at 1,245.5 dollars per ounce.

U.S. dollar index advanced 0.4 percent Wednesday. A stronger dollar often weighs on dollar-denominated gold.

Inflation remaining in check also dampened gold. U.S. Department of Labor released a report on Wednesday showing the U.S. consumer price index rose a seasonally adjusted 0.1 percent in September as prices for food and housing increased, but falling energy expenses kept inflation in check, preventing a move to the precious metal.

Market analysts hold that gold runs into resistance near the 1, 255-dollar mark and has been in a normal trading correction.

Traders are waiting for the weekly jobless claims report due out Thursday, as well as housing data, manufacturing indices, and a new home sales report due out Friday.

Silver for December delivery lost 31.8 cents, or 1.81 percent, to close at 17.231 dollars per ounce. Platinum for January delivery shed 11.9 dollars, or 0.93 percent, to close at 1,271.1 dollars per ounce.