Gold Prices Fall to Eight Month Low
Last week saw the price of gold continue to fall as the dollar remained strong. On Monday it opened at 1,271.70 and fell steadily all week before closing at an eight month low on Friday down at 1,230.30.
Strong economic data from the US on Friday backed up optimism about the recovering economy and added to expectations that an increase in interest rates will arrive sooner than expected. US retail sales rose 0.6% last month and the University of Michigan said its consumer sentiment index rose to a 14 month high of 84.6.
As the dollar gains in strength gold will become less appealing to investors as dollar priced commodities become more expensive for holders of other currencies. As a result, if the Federal Reserve does make an announcement about interest rates then the price is likely to fall further.