Gold futures drop to weekly low

2013-10-09 21:41:36 GMT2013-10-10 05:41:36(Beijing Time)  Xinhua English

CHICAGO, Oct. 9 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange ended lower Wednesday to settle at their lowest level in more than a week, pressured by a rally in the U.S. dollar.

The most active gold contract for December delivery fell 17.4 dollars, or 1.31 percent, to settle at 1,307.2 dollars per ounce. Statistics show gold price logged its lowest close since Oct. 1.

Market analysts say as the dollar extended gains and imports slumped in India, the world's biggest physical gold consumer, gold prices are under great pressure. The Bloomberg U.S. Dollar Index, a gauge against 10 major trading currencies, rose to a one-week high, curbing market demand for the precious metal as an alternative asset.

Some analysts believe the uncertainty caused by the U.S. government shutdown and political wrangling over raising the nation's debt ceiling have failed to fuel much of a safe-haven bid for gold on the day.

Purchases of gold and silver by India were worth 800 million U. S. dollars in September, compared with 4.6 billion dollars a year earlier, according to statistics released by India's Commerce Ministry.

Silver for December delivery fell 55.2 cents, or 2.46 percent, to close at 21.891 dollars per ounce.

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