Gold falls slightly as US dollar rallies

Gold futures on the COMEX division of the New York Mercantile Exchange fell slightly on Wednesday as the U.S. dollar staged a modest rally against the euro.

The most active gold contract for December delivery fell 3.9 U. S. dollars, or 0.34 percent, to settle at 1,159.1 dollars per ounce. The U.S. dollar rose 0.37 percent against the euro as of 2 pm in New York market after a report from Eurostat, the European Union's statistical office, showed worse-than-expected growth in industrial production. A stronger dollar can weigh on commodities priced in the currency, making it more expensive to buyers using other currencies.

Gold prices also came under pressures from oil futures' sharp drop on Wednesday. Light, sweet crude for December fell more than 1 percent on the New York Mercantile Exchange.

Additionally, Philadelphia Fed President Charles Plosser, a voting member of the Fed policy committee, said in London that interest rates should be raised "sooner rather than later", cutting demand for the precious metal as safe-haven asset.

Silver for December delivery lost 5.5 cents, or 0.35 percent, to close at 15.623 dollars per ounce. Platinum for January delivery lost 1.4 dollars, or 0.12 percent, to close at 1,205.3 dollars per ounce.