Finland Times

Gold futures on the COMEX division of the New York Mercantile Exchange dropped to an eight- month low Friday as the U.S. dollar was buoyed by an improving economy that reinforced the outlook of an earlier-than-expected interest rate increase.

     The most active gold contract for December delivery dropped 10. 3 dollars, or 0.84 percent, to settle at 1,216.6 dollars per ounce. For the week, gold shed 1.2 percent. The precious metal posted its third straight weekly loss in a row.

     Market fears for a strengthening economy in the United States and a rate hike dampened gold.

     Gold was pressured earlier in the day after data showed a decline in U.S. jobless claims, indicating that the labor market is on a solid footing, signs seen as supportive of economic growth.

     The U.S. Federal Reserve indicated on Wednesday that it could raise borrowing costs faster than expected once it started moving, also weighing on gold.

     Market analysts believed that if the dollar stays strong and the U.S. data continues to be positive, gold will really be in for a tough time.

     Investors were relieved as Scotland rejected independence in a historic referendum, avoiding a financial turmoil.

     Silver for December delivery fell 67.3 cents, or 3.63 percent, to close at 17.844 dollars per ounce. Platinum for October delivery lost 12.2 dollars, or 0.9 percent, to close at 1,337.3 dollars per ounce.