NEW YORK: Gold fell 1.6 per cent on Friday, dropping below $1,200 an ounce for the first time this year, as data showing a stronger-than-expected US labor market bolstered bets that the US Federal Reserve will raise interest rates next year.

Friday’s losses sent bullion into a correction from its July high of $1,345, taking the metal within sight to a four-year bottom at below $1,180 an ounce.

Platinum dropped around 3pc and other precious metals and commodities also fell broadly as the dollar index rallied to a four-year high.

Spot gold fell as much as 1.8pc to its lowest since Dec. 31 at $1,191 an ounce, and was down 1.6pc at $1,194.65 at 11:52 am EDT.

US COMEX gold futures for December delivery were down $20 at $1,195.10 in heavy trading volume.

Published in Dawn, October 4th, 2014