19th Sep 2014 12:17
WASHINGTON (Alliance News) - Gold prices are lower Friday morning, extending recent losses as the dollar firmed amid speculation that US interest rates will rise at a faster pace once monetary tightening begins.
Gold futures for December delivery are down USD3.70 or 0.30% at USD1,223.20 an ounce.
On Thursday, gold futures ended down USD9.00 or 0.7% at USD1,226.90 an ounce. Gold futures declined to an eight-month low of USD1,216.30 an ounce during the day.
A mixed batch of US economic data also contributed to the bullion's weakness.
On Wednesday, the Federal Reserve reduced its monthly asset purchased to USD15 billion and reiterated its pledge to keep interest rates at near-zero for "considerable time" after its bond buying stimulus program ends.
However, the Fed, which projected a significant drop in unemployment to below 5% by 2017 and forecast inflation to run closer to target levels of around 2%, gave hints that tightening may be less gradual once underway.
Silver for December is down USD0.102 or 0.55% at USD18.415 an ounce. Meanwhile, copper is down marginally at USD3.091 per pound.
On the economic front today, the US Conference Board is due to release its leading economic indicators index for August at 10 am ET. Economists expect the index to increase by 0.4% month-over-month in August.
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