Gold price falls on a stronger U.S. dollar

Gold price declined on a stronger U.S. dollar. The greenback rose against other currencies on better-than-expected U.S. preliminary manufacturing purchasing managers' index. The U.S. preliminary manufacturing purchasing managers' index (PMI) climbed to 54 in October from 53.1 in September, beating expectations for a decline to 52.8.

"The positive start to the fourth quarter suggests the economy may be picking up speed again after slowing in the third quarter, for which the PMI surveys pointed to annualised GDP growth of 2.2%," Markit Chief Economist Chris Williamson.

Earlier, gold price rose on China's interest rate decision. The People's Bank of China (PBoC) announced on Friday that it lowered the one-year benchmark bank lending rate by 25 basis points to 4.35%. It was the sixth interest rate cut since last November.

The central bank hopes with this decision to support the country's economy.

The interest rate cut would be effective from October 24.

One-year benchmark deposit rates were cut by 25 basis point to 1.50%, reserve requirements (RRR) were lowered by 50 basis points to 17.5% for all banks.

New reserve requirements would be effective on October 24.

December futures for gold on the COMEX today declined to 1162.90 dollars per ounce.