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Gold today declined, with the metal almost erasing this year’s gains as the outlook for higher US interest rates amid an improving economy curbs demand for the metal.
Gold declined 0.5 per cent to US $ 1,208.66 an ounce.
Silver also eased by 0.5 per cent to US $ 17.02 an ounce.
Gold fell 0.8 per cent this week, cutting its 2014 increase to 0.6 per cent.
Improving US data has added to speculation that the Federal Reserve will raise interest rates next year.
An accelerating US economy means investors are shunning the metal even after the US expanded sanctions against Russia and stepped up its campaign against Islamic State.
Rising interest rates reduce gold’s allure because the metal generally only offers investors returns through price gains, while a stronger dollar typically cuts demand for a store of value.
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