Gold reaches almost three-week low after Fed shows possibility of interest rate hike

With the US Federal Reserve indicating a possible rise in interest rates in December, gold reacted with a dip reaching almost reaching its three-week low level. Spot gold stood at around $1,146.26 an ounce, being steady (it had touched a three week-low in the previous session at $1,144.20 an ounce). In India, gold futures today fell 0.98 per cent to Rs. 26,808 per 10 grams.

There is a possibility of gold performing its worst week in two months, as per reports. * Bullion dipped 1.4 percent in the week, falling the sharpest since the week ending august 28, as per reports. Also, the dollar strengthening to a 2-1/2-month high recently also affected gold. The Fed noted that the interest rate hike in its next meeting would depend on progress made on employment and inflation, and did not take into consideration any reference to global developments affecting US economic activity, as per reports.