Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold fell 0.9% to close under $1,067, its lowest level since February 2010, as the prospect of a rate increase from the Federal Reserve in December boosted the dollar and weighed on alternative assets.

San Francisco Fed President John Williams said on Saturday that there is a strong case for raising interest rates next month. Speaking at UC Berkeley, he said the committee is reasonably confident that the recovery is on course toward its meeting goals for employment and inflation, "assuming that we continue to get good data." Considered a centrist who typically voices the consensus of opinion within the FOMC, Williams added that the Fed could always cut rates back to zero if the economy suffers.

The dollar got a lift from Williams' comments as traders become more convinced of a December hike. A rising dollar typically weighs on gold and other commodities denominated in it for international trade by making them more expensive to holders of other currencies. The Thomson Reuters core commodities index, down 20% so far this year, dropped to its lowest level since 2002.

The other precious metals also finished lower, with silver sliding 0.5% while platinum and palladium lost 1% and 3.1%, respectively.

At the Comex close: December gold fell $9.50 to $1,066.80; December slid 6 cents to $14.03; January platinum dropped $8.50 to $847.40; December palladium lost $17.55 to $541.35 an ounce.