Gold futures prices fell Friday, leaving the metal languishing at six-week lows and headed for a roughly 1.7% loss for September.
Gold had markedly dropped a day earlier as the dollar index deepened its advance, seen after theFederal Reserve this week lifted federal-funds rates for the third time this year and signaled it was prepared to increase again in December. The ICE U.S. dollar index
was up 0.3% Friday and headed for 0.6% September gain owed to the late-month move.
In early trading, December gold
eased 70 cents, or 0.1%, at $1,186.70 an ounce The contract plunged more than $11 or 1% to settle at $1,187.40 Thursday. Based on the most-active contract, that was the lowest settlement since $1,184 on Aug. 17, FactSet data show.
Gold is sensitive to higher rates because they push up U.S. bond yields, reducing the attraction of nonyielding bullion, and tend to boost the dollar, which makes gold more expensive for buyers with other currencies. Gold prices based on the most-active contracts have declined almost 11% so far in 2018 while the dollar index is up about 3.5%, both moves largely linked to a tightening Fed.
Splitting from gold’s move, December silver
rose 5 cents, or 0.4%, to $14.34 an ounce, but was on track for a 1.4% September drop.
fell 0.2% to $2.7775 a pound Thursday. January platinum
lost 0.1% to $815.50 an ounce. December palladium
rose 0.6% at $1,077.80 an ounce, trying for its 13th session gain in a row. It continues to stand at its highest prices since January, buoyed by expectations for record automotive demand for palladium this year.
The popular SPDR Gold Trust
slipped 0.1%, while the iShares Silver Trust
rose 0.7%. The VanEck Vectors Gold Miners ETF
fell less than 0.1%.
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Rachel Koning Beals is a MarketWatch news editor in Chicago.
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