Gold Trades Lower After FOMC Stays on Target for December

Precious metals prices dropped Friday and headed for a weekly loss, nicked by a firmer dollar that’s been bolstered by the Federal Reserve’s adherence to an interest rate-tightening cycle.

Sharp losses for stocks for the session and the week, which are in part tracking the plunge into a bear market for oil, could limit gold’s downside should risk-off sentiment generate refreshed interest in the haven metal.

December gold GCZ8, -1.14% eased $5.80, or 0.5%, at $1,219.40 an ounce, down over 1% for the week. December silver SIZ8, -1.86% fell 11 cents, or 0.8%, to $14.305 an ounce, and has fallen nearly 3% for the week.

Gold suffered a fourth loss in five sessions on Thursday, then struggled for direction in electronic trading with the U.S. dollar extending gains once the latest policy update from the Federal Reserve signaled a central bank still on a tightening course for later this year and early next.

“Solid Fed conviction to raise interest rates in December was plain in [Thursday’s] announcement. Higher real interest rates, based on the Fed comments, and a slightly stronger U.S. dollar maintained pressure on gold prices,” said Rob Haworth, senior investment strategist at U.S. Bank.

via MarketWatch

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