Gold Drops to $1220 on Strengthening U.S. Economy

Gold held above its lowest in 8-1/2 months on Friday but was headed for a third straight weekly drop on fears that a rate hike in the United States and a strengthening economy could dim the metal’s appeal.

Investors were also eyeing the results of Scotland’s independence referendum to gauge the impact on the dollar, which was already trading near a four-year high against a basket of major currencies.

Spot gold was little changed at $1,224.64 an ounce by 0037 GMT, poised for a 0.3 percent drop for the week.  On Thursday, the metal fell to $1,216.01 – its lowest since early January – before recovering modestly to close up 0.2 percent.


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