Investing.com -- Gold future prices fell for the eighth consecutive day, as prices neared a one-year low amid continuing fears of an interest-rate hike by the U.S. Federal Reserve.
Gold prices for April delivery on the Comex division of the New York Mercantile Exchange plunged $10.20 or 0.90% to $1,149.90 a troy ounce. Gold futures dipped below a four-month low, approaching a yearly low of $1,142.47 from early-November.
Gold has been in freefall since last Friday when prices declined more than $30 an ounce, following stronger than expected U.S. employment data in the February jobs report. The creation of 295,000 new U.S. jobs, as well as a 5.5% unemployment rate has heightened concerns that the Fed could raise interest rates by June.
In turn, the U.S. dollar has soared as expectations of an increase of the Fed Funds Rate has coincided with the start of a EUR 60 billion quantitative easing program by the European Central Bank. The Federal Open Market Committee could remove references of "remaining patient" from its minutes when it meets next on Mar. 17-18. The removal typically indicates that an interest rate hike is imminent.
The U.S. Dollar Index, which measures the strength of the greenback against a basket of six other major currencies, continued its march toward 100, approaching a level it has not reached in more than a dozen years. In addition, the sharp rise of the dollar index in recent weeks has marked its second-highest appreciation in 40 years. On Wednesday, the index rose 1.23 or 1.25% to 99.84.
The dollar is up 20% on the euro on a year-over-year basis and is also up broadly against the Japanese Yen, the Chinese Yuan and Thai Baht. Since the start of February, USD/JPY is up from 118.98 to Wednesday's level of 121.42.
A strengthening dollar affects dollar-denominated commodities like gold by making it more expensive for holders of other currencies to purchase the metal.
Earlier on Wednesday, gold rose above $1,162 an ounce following the release of January-February industrial output, investment growth and retail sales in China. For February on a year-over-year basis, Chinese investment growth was up 15%, while industrial output rose by 7.8%. Retail sales, meanwhile, gained 11.7%.
China is the second-largest purchaser of the precious metal in the world.
Silver futures, meanwhile, for May delivery also fell 0.215 or 1.35% to trade at 15.418 a troy ounce.
Copper delivery for May dropped 0.017 or 0.64% to $2.607 a pound.
Elsewhere, Platinum and Palladium futures were both down by more than 12 points on the day. Platinum for April delivery fell 12.2 to 1,117.8, its lowest level since July, 2009. Palladium for June deliveries dropped 13 points to 791.10.