Gold prices slid to a four-year low Friday morning, as the resurgent dollar was boosted by upbeat U.S. GDP and signs the Federal Reserve will raise interest rates early next year.
Also, the Bank of Japan’s surprise decision to extend monetary stimulus has prompted traders to seek riskier assets.
Gold futures for December delivery are down $24.80 or 2.05 percent at $1,174.00, after dropping down to $1,167.30, the lowest since July 2010.
On Thursday, gold futures ended down $26.30 or 2.2 percent at $1,198.60 an ounce, after falling to $1,195.50, the lowest since February 2010.
On Wednesday, the Federal Reserve announced the end of its monthly asset buying program, QE3. The Fed said interest rates may remain at near zero for a “considerable time”, but added that rate hikes may happen sooner than markets expect if economic recovery continued to gather steam.
Later, the Commerce Department reported the U.S. economy grew 3.5 percent in the second quarter, exceeding analyst estimates.
Silver for December is down $0.267 or 1.63 percent at $16.153 an ounce, after declining to $15.970, a four-year low.
The U.S. Commerce Department will release its personal income and spending report for September at 8:30 am ET. Around the same time, the Labor Department will release its employment cost index for the third quarter.
San Francisco Federal Reserve Bank President John Williams will take part in a panel discussion at the South African Reserve Bank in Pretoria at 9 am ET.
At 9:45 am ET, MNI Indicators will release the results of its manufacturing survey for the Chicago region, while Reuters and the University of Michigan are due to release the results of their final consumer sentiment survey at 9:55 am ET.
The material has been provided by InstaForex Company – www.instaforex.com