Prime News: Gold Drops as Strong U.S. Data Boosts Dollar

Gold slipped to almost a 10-month low, contributing to its deepest monthly price declines in over three years as upbeat U.S. economic data and higher U.S. Treasury yields boosted the dollar. Spot gold fell 1.2 percent at $1,174.44 per ounce.

U.S. gold futures slipped 1.4 percent at $1,170.80 an ounce. Private employers in the U.S. raised hiring this month much more than expected and consumer spending rose in October, giving more evidence to the Federal Reserve for an interest rate hike. The U.S. economy continued to grow in October and November, according to the Fed’s Beige Book report, however, wages and prices increased only modestly and the firm dollar pressured manufacturing. Gold has declined by over eight percent this month, the largest monthly drop since June 2013.

Silver shed 0.9 percent to $16.44 per ounce and platinum eased 0.8 percent to $910.20. Palladium climbed 1.1 percent to $768.20.

The material has been provided by InstaForex Company –

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