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Gold Prices Fall to Eight Month Low

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.

OCA News Editor

Jenny McKinnley is OCAs financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.

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