Gold Falls With Dollar Rise, Stability "Interest"


Gold prices fell to their lowest level in a week as the dollar rallied after the US central bank kept rates steady, amid speculation that it is heading for more interest rates.
The Federal Reserve said in a statement: "The labor market is growing stronger ... economic activity is growing at a strong pace," keeping up his plans to continue raising interest rates gradually.

Gold fell 0.2 percent in spot trade to $ 1223.23 an ounce late in the US session, having touched its lowest since November 1 at $ 1219.59 earlier in the session.

US gold contracts for December delivery fell $ 3.60, or 0.29 percent, to settle at $ 1225.10 an ounce.

"The Federal Reserve has given no indication that they are changing the pace of interest rate increases," said Michael Caggino, portfolio manager at Permanent Portfolio of Vandals.

Financial markets had expected the Fed to keep its benchmark lending rate stable, and the US central bank's statement showed little change in its outlook for the economy since its previous meeting in September.

The Federal Reserve raised interest rates three times this year and is expected to raise them again in December.

The yellow metal is down more than 10 percent from April's high, as investors favor the dollar amid the fallout from the US-China trade war on the back of rising US interest rates.

Gold was the fifth consecutive session of losses.

Among other precious metals, spot silver fell 1.1 percent to $ 14.40 an ounce.

Palladium fell 1.0 percent to $ 1122.22 an ounce, after touching a two-week high of $ 1139.50 in the previous session.

Platinum fell 1.6 percent to $ 858.50 an ounce, after hitting a session Wednesday, the highest level since June 25 at $ 877.50 an ounce.