Gold Pulls Back Sharply Amid Dollar Strength

(RTTNews) - After ending the previous session modestly higher, the price of gold showed a substantial move back to the downside during trading on Wednesday.

Gold for December delivery plunged $21.90 to $1,189.30 an ounce after rising $1.40 to $1,211.20 an ounce on Tuesday. With the steep drop, the price of gold fell to a nine-month low.

The sharp pullback by the price of gold came as the U.S. dollar moved higher in reaction to the latest batch of U.S. economic data.

The Commerce Department released a report showing that durable goods orders shot up by much more than expected in October due in part to a jump in orders for commercial aircraft and parts.

However, a separate Commerce Department report showed that new home sales fell by much more than anticipated in October.