Chicago, Sep 1 (IANS) Gold futures fell on the COMEX division of the New York Mercantile Exchange as the US Federal Reserve hinted that the US interest rate could be increased before the end of the year.
The most active gold contract for December delivery on Monday fell $1.5 (0.13 percent) to settle at $1,132.50 per ounce, reported Xinhua news agency.
Gold was put under pressure as the US central bank hinted that despite a recent trend of less than ideal US economic data, they would still consider raising the US interest rate before the end of 2015.
An increase in the Fed’s interest rate drives investors away from gold and towards assets with a return, as the precious metal bears no interest.
There has not been an increase in the Fed’s interest rate since June 2006, before the beginning of the American financial crisis.