(RTTNews) – Gold prices moved sharply lower during trading on Friday, extending the modest pullback seen in the previous session.
After slipping $17.50 or 0.4 percent to $4,186.90 an ounce during Thursday’s session, gold for November delivery plunged $99.30 or 2.4 percent to $4,087.60. Despite the two-day slump, the price of gold surged 2.2 percent for the week.
The extended pullback by the price of gold came amid renewed uncertainty about the outlook for interest rates along with an uptick by the value of the U.S. dollar.
Recent comments from Federal Reserve officials as well as indications key U.S. economic data may never be released due to the government shutdown have reduced confidence the central bank will continue lowering interest rates next month.
CME Group’s FedWatch Tool currently indicates the chances of another quarter point rate cut at the next Fed meeting have slumped to 45.9 percent from 66.9 percent a week ago.
The steep drop by gold prices also came as the U.S. dollar index has risen 0.16 points or 0.2 percent to 99.32 on the day.
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