Gold retreats as US dollar strengthens

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Friday as the US dollar and US Treasury yields surged. The most active gold contract for December delivery fell 20.8 U.S. dollars, or 1.25 percent, to close at $1645.20 per ounce at the time of writing versus Thursday’s closing price at $1662.10.

Gold dropped 0.7 percent for the week. US Commerce Department reported Friday that US personal consumption expenditures (PCE) price index rose 0.3 percent in September, matching the gain in August.

The latest PCE data keeps the Federal Reserve on track to hike interest rates by 75 basis points in November, and this consequently is dampening gold.

The University of Michigan’s consumer sentiment index came in at a reading of 59.9 in October, basically unchanged from the number in September.