The yellow metal fell to its lowest level in almost three years, dropping as low as $1,179 per ounce. Gold fell after the US Federal Reserve hinted it could cut back its stimulus program.
Gold futures fell 0.83 percent standing at $1,201.25 an ounce at 8.04am GMT, while the silver futures rose 1.70 percent trading at $18.700 an ounce at the same time.
The precious metal has dropped more than $100 over the past week, with beginning the week at $1,301.55 an ounce.
With Gold prices weighing down with more than 25% this quarter, the largest gold-backed exchange-traded fund, were trading with the same rate at 969.50 tonnes on Thursday.
The gold prices in the past years have been driven by the uncertainty of the surrounding the global economic condition after the financial crisis in the eurozone.
The US dollar Index rose 3.06% standing at 82.940, since the announcement from the Federal Reserve (Fed) last week regarding the possible cut back in the $85 monthly bond-purchase program.
Fed’s Chairman Mr Ben S. Bernanke said its might adjust the $85 billion quantitative easing (QE) program if the US economy is t move later this year.
The soaring house price, durable foods and the solid confidence numbers are expected to pick next year to ease off the QE stimulus program.
The Personal Consumption Expenditures (PCE) Price Index rose to 1.0% in May from0.7% in previous month.
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Article provided by HY Markets Forex Blog
