Prices of US gold futures rose in the morning in Europe on Friday, helped by a softer US dollar, extending a fall the evening before that took the precious metal to its lowest level in three weeks, but the precious metal maintained low amid fresh signs the Fed could raise interest rates before year-end.
On the Comex Exchange, gold futures for December delivery were up 0.17% at $1,149.40, after shedding a whopping $28.80, or 2.5% on Thursday.
The greenback was under pressure after the DOC reported Thursday that gross domestic product grew at a yearly rate of 1.5% in the three months to September, expectations for growth of 1.6% missing.
Furthermore, the National Association of Realtors said its index of pending home sales fell 2.3% last month, disappointing expectations for a profit of 1.0%.
The dollar had strengthened broadly after Fed statement Wednesday, he said officials could decide to raise interest rates at its December meeting.
In financial data on Friday, the personal consumption expenditures, or PCE index, a key inflation indicator for the Fed-declined 0.1% and 1.4% last year. The Fed is watching PCE as it targets inflation of around 2% before it raises rates.
At Multi Commodity Exchange, gold delivery in far-month February next year fell Rs 76, or 0.28%, to Rs 26,777 per 10 gram in futures trade amid a weak global trend.
Analysts of Commodity market attributed the drop in US gold futures to a weak global trend where it was held in a three-week as investors weigh the strength of the US economy, with the increase in bets that the Fed will begin to increase interest rates from December.
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