Gold futures were driving down on Friday as reduced demand for the yellowish metal kept its price below the milestone value of $1,600 per troy ounce, Reuters reports.
Expectations among traders, investors and analysts for the U.S. to deploy additional stimulus measures to spur the U.S. economy, such as quantitative easing, were on the wane on Friday. The price of bullion has been within a $32 range this week as short-term investors are buying and selling with small price moves, analysts told the news source.
"Given the collapse of the rupee, gold prices in India are still close to record highs, which is killing the jewelry market at the moment," analyst David Wilson with Citigroup told Reuters. "Physical investor demand, when you look at ETFs, is not positive, so you would need speculative demand to be making up the difference, and it's not. That's related to the issue of growing skepticism over whether there will be U.S. QE."
At 9:46 a.m. on Friday, gold futures fell 0.21 percent, a $3.30 drop to $1,577.10 per troy ounce.
Forbes reports Friday morning saw gains to the Dollar Index, a metric of the value of the world's reserve currency against competing monetary units.
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