Yellow loses its luster with the rise of the dollar

Gold prices fell to their lowest level in 10 days, marking the biggest weekly drop in more than a month as the dollar gained support from strong US economic data ahead of next week's Federal Reserve meeting.

Spot gold fell 0.3 percent to $ 1238.26 an ounce late in the US session. Earlier in the session, prices fell to their lowest level since Dec. 4 at $ 1232.39. The yellow metal ended the week with a 0.7% loss.

US gold contracts fell 0.5 percent to settle at $ 1241.40 an ounce.

The dollar rose to a 19-month high after data showed US consumer spending appeared to be picking up momentum while industrial production recovered in November.

Markets are waiting for a meeting of the Federal Reserve Monetary Policy Committee on December 18 and 19, when the US central bank is widely expected to raise interest rates. But the focus will be on the outlook for the interest path in 2019.

Gold prices hit their highest level in five months at $ 1250.55 an ounce on Monday, but gave up all gains as the dollar rallied against a basket of major currencies.

Among other precious metals, palladium fell by 1.9 percent to $ 1236.50 an ounce, after hitting an all-time high of $ 1269.25 on Thursday. Despite falling today, the metal is in its third week of gains, rising nearly 1 percent this week.

Silver fell 1.2 percent to $ 14.58 an ounce, while platinum fell 0.7 percent to $ 787.70 a troy ounce, marking the sixth weekly decline in a row.