Gold settled at its lowest level in more than eight months Thursday as the dollar index jumped to a four-year peak after the Federal Reserve signaled that a faster hike in U.S. interest rates might be on the horizon.
The Fed on Wednesday renewed its pledge to keep interest rates near zero for a "considerable time", but also indicated it could raise borrowing costs faster than expected when it starts moving.
``The dollar did its job again and gold wiped out the entire eight months' gains and we are now back where we were at the beginning of the year,'' Sharps Pixley CEO Ross Norman said.
``Even though the fourth quarter is the traditional strong period for physical demand, I don't see the market going significantly higher or lower ... I wouldn't be surprised to see prices around $1,230/$1,240 at the end of the year.''