Gold dropped below the psychologically important $1,100 per ounce level Friday afternoon in London as uncertainty over the timing of the Fed rate lift-off keeps weighing on the metal.
The spot gold price was last at $1,099.5/1,100.0, per ounce, down $12.40 on Thursday’s close, having dropped earlier to a low of $1,098.9 – its weakest since August 11.
The precious metal remains under pressure ahead of the crucial FOMC meeting next week.
The Fed’s policy board have been locked into a public debate over the correct timing of raising interest rates, which have been near zero since December 2008. In April, the Fed removed all calendar references in its forward guidance, meaning the bank is now entirely data-dependent.
Various FOMC members have turned increasingly hawkish over the past few months, with Fed chairwoman Janet Yellen expressing a desire to lift rates this year.
As well, upbeat US data this afternoon put pressure on the metal – PPI and core PPI came in at 0.0 percent and 0.3 percent respectively.
The dollar index was stronger at 95.55.
(Editing by Tom Jennemann)
The post Gold drops below $1,100/oz, hits one-month low appeared first on The Bullion Desk.
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