Gold prices slumped on Friday, falling to the lowest level since 2010 as the dollar strengthened amid signs that the US economy is expanding.
Bullion futures for immediate delivery fell by 2.6% to $1,167.49 an ounce, the lowest since July 2010. Silver slid 3% to $16.0009 an ounce. The stronger greenback rose to the highest in over six years, weighing negatively on the commodity.
Gold Futures for December delivery declined by 2.7% to $1,166.20 an ounce on the Comex in New York.
The US dollar index, which measures the strength of the greenback against a basket of major currencies, climbed 0.27% to 86.378.
The yellow metal is heading for its first monthly loss in 2014. Assets in the world’s biggest gold-backed exchange-traded fund, SPDR Gold Trust declined for a third day to 741.20 metric tons on Thursday, the lowest since October 2008.
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A report released showed that the US economy rose 3.5% in the last quarter, expanding more than the expected 3% made by analysts and marking its strongest six months in a decade. Fewer Americans filed applications for unemployment benefits over the past month, according to a data from the US Labour Department.
This comes after the Federal Reserve (Fed) announced it will end its asset-purchasing program amid signs the world’s largest economy is strengthening on Wednesday. The Federal Open Market Committee (FOMC) said the labour market had improved and signaled that underutilization of labour resources was slowly retreating.
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