November 10, 2018
ma
Gold dropped more than one percent to its lowest level in the month of Friday as the US dollar rose after the Federal Reserve (US central bank) confirmed its stance on tightening monetary policy, which negatively affects the precious metal that generates no returns.
The US central bank kept the interest rates unchanged on Thursday, but it is widely expected that they will be lifted in December December, for the fourth time this year, while pointing to the strength of the economy, which has only seen a decline in the growth of corporate investment.
By 1830 GMT, gold in spot transactions dropped 1.3 percent to 1207.78 dollars an ounce, after having touched its lowest level since October 11 October 1206.13 dollars an ounce.
The yellow metal tends to end the week on a two percent drop, the biggest weekly drop since the week ending August 17 August.
In U.S. futures contracts, gold went down 16.5 dollars or 1.35 percent to reach a settlement of 1208.60 dollars an ounce.
The dollar index, which measures the performance of the U.S. currency in front of a basket of six major currencies, has risen to its highest level in 16 months, which it recorded on Oct. 31 October.
Among other precious metals, silver dropped about 1.7 percent in spot transactions to 14.16 dollars an ounce, after touching the lowest level since Sept. 18 September. The metal is geared towards registering the weakest weekly performance since February February.
Platinum fell 1.3 percent to 853.30 dollars an ounce, while palladium fell about 0.7 percent to $1116 per ounce.
