Gold fell on Friday as a dollar-driven rally encouraged by U.S. economic growth dimmed bullion’s investment appeal, sending the metal’s prices toward a key support level at $1,200 an ounce.
Spot gold was down 0.6 percent at $1,215 an ounce. The metal fell to a nine-month low of $1,206.85 on Thursday, before rebounding due to a sharp selloff in U.S. equities, which prompted investors to seek refuge in perceived safer assets such as bullion.
U.S. gold futures for December delivery settled down $6.50 at $1,215.40 an ounce. “Today we are seeing the dollar and stock markets pressuring precious metals,” MKS SA senior vice president Bernard Sin said.