Gold Slides After Fed Meeting

Gold prices fell on Friday and the dollar remained supported after the U.S. Federal Reserve left interest rates, as widely expected, but reaffirmed its monetary tightening stance.

Interest rate futures implied a 78 percent chance the U.S. central bank would raise rates at its Dec. 18-19 meeting,

Spot gold was down 0.33 percent at $1,218.86 per ounce while U.S. gold futures were down 0.55 percent at $1,219.50 per ounce.

The Fed has raised rates three times so far this year despite rising anxiety about potential risks to economic growth.

Meanwhile, ahead of a meeting with U.S. President Donald Trump in Argentina, Chinese President Xi Jinping said on Thursday that Beijing wants to resolve problems with the U.S. through talks but Trump must respect China’s choice of development path and interests.

China’s producer price inflation slowed for the fourth month in October on cooling domestic demand, official data revealed today, suggesting that economic momentum in the world’s second-largest economy is softening in the face of simmering trade frictions with the United States.

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