Gold Prices Fell 2.3% On Friday And 5.3% In A Week.

The New York Mercantile Exchange's main gold contract in December fell $27, or 2.3%, at $1171.60 an ounce. Gold prices fell 5.3% in a week, down 3.7% since October and 3.3% since 2014.

Earlier this week, the Fed gave a more hawkish attitude than the market expectations in the latest monetary policy statement, which has significantly suppressed gold prices.

At the October decision meeting, the Fed decided to stop the project to stimulate economic growth through the purchase of bonds, and gave a fairly positive assessment of the trend of economic recovery. Gold prices fell 2.2% in the next trading day. In addition, government data on Thursday showed that the US economy grew by 3.5% in the third quarter, which is better than economists' average expectations.

In a report on Friday, Commerzbank analysts wrote, "robust data on US gross domestic product is a pleasant surprise, confirming that the Fed's more optimistic judgement of the US economic outlook a day earlier has indirectly suppressed the demand for gold as a hedge investment product."

The Bank of Japan announced earlier this Friday that it will Quantitative easing The scale of the project extends from 50 trillion yen per year to 80 trillion yen per year. The central bank also said it would buy more long-term Japanese government debt and increase the purchase scale of exchange traded funds and REITs to three times.

The Nikkei 225 index rose 4.83% after that. Yen The exchange rate against the US dollar fell rapidly to its lowest level since January 2008. The relatively strong US dollar includes gold Among them, the holding and transaction costs of a variety of commodity futures contracts priced in US dollars are obviously adverse factors to prices.

The German commercial bank's report also points out that gold prices have fallen below the psychological level of $1200 an ounce, and are below the four year low of $1180 an ounce.

Jim Wyckoff, a senior analyst at Kitco.com, has a more pessimistic view of gold prices than before Jim. He said if gold prices could not be held at $1183 per ounce, there could be a big problem. "If gold prices fall below this level, there may be more drastic moves, and the temptation for us $1000 per ounce can not be ruled out."

In terms of other metal prices, the December silver contract fell 31 cents on Friday to $16.11 an ounce, while the December copper contract fell 1.6 cents to $3.047 a pound.

Platinum contracts fell $10.70 in January, closing at $1235.20 an ounce, or 0.9%, while palladium contracts in December rose 11.10 to settle at $791.80 an ounce in January.