Gold prices record largest drop in a single day

Gold prices record largest drop in a single day


Gold futures on the COMEX division of the New York Mercantile Exchange recorded its biggest one- day decline since October 1 on Thursday (Friday morning GMT ) , depressed concern U.S. Federal Reserve will reduce its bond purchases in the coming policy meeting .

The most active gold contract for February delivery fell 32.3 U.S. dollars , or 2.57 percent , to close at 1224.9 U.S. dollars per ounce , Xinhua reported .

Fed officials are scheduled to hold a crucial meeting on Tuesday and Wednesday next week . Market analysts believe that the chance of the Fed to decide withdrawal of bond purchases is very high at the meeting . Given these expectations , the U.S. dollar rose on Thursday , which is negative for gold .

Economic data released Thursday also supports the possibility of a reduction in the Fed's bond -buying program . The U.S. Commerce Department reported that overall retail sales in the country rose a seasonally adjusted 0.7 percent in November , the highest since June , while inventories at U.S. businesses rose 0.7 percent in October , well above market expectations .

The number of initial claims for unemployment benefits in the week ending December 7 rose by 68,000 to 368,000 , according to U.S. Labor Department data released Thursday . But economists believe that the volatility is normal when considering the holiday season .

Silver for March delivery lost 90.3 cents , or 4.44 percent , to close at 19.453 dollars per ounce . Platinum for January delivery fell 20.8 dollars , or 1.5 percent , to close at 1364.4 U.S. dollars per ounce .