Gold hits 10-month low as oil continues rally
Prices of precious metals dropped on Thursday with gold hitting a ten-month low of $1,161.30 per ounce on a rise of U.S. treasury yields provoked by soaring crude prices. Expectations that the United States Federal Reserve will raise interest rates in December are another factor in the sharp decline of gold prices.
Spot gold slid 0.72% to sell for $1,165.01 per ounce at 4:22 p.m. CET. Silver shed 0.56% to go for $16.42 per ounce and platinum traded 0.82% lower, changing hands for $902.50 per ounce at 4:23 p.m. CET. Palladium plunged 2.08% to go for $754.50 per ounce at 4:23 p.m. CET.
Crude prices extended gains following the Organization of the Petroleum Exporting Countries (OPEC) agreement on an output cut. WTI for January delivery jumped 3.22% to go for 50.67 per barrel at 4:15 p.m. CET and Brent crude for February rallied 3.57% to sell for $53.34 per barrel at 4:16 p.m. CET.
The dollar index dipped 0.09% to 101.49 at 4:24 p.m. CET.