Gold price fell slightly

Gold fell slightly, approaching to a7 October low, helped by the widespread strengthening of the dollar, as well as positive US data on retail sales and producer prices.

The US Dollar Index, showing the US dollar against a basket of six major currencies, traded with an increase of 0.4%. Since gold prices are tied to the dollar, a stronger dollar makes the precious metal more expensive for holders of foreign currencies.

"We're in the middle of one of the largest movements associated with the Fed - we saw the rise of almost $ 100 in June and July, and are now seeing a decrease of $ 100 in September and October, as the markets see a high chance of raising the Fed's interest rate in the coming months - said Hamza Khan, senior strategist at ING Hamza Khan.

According to the futures market, the likelihood of a Fed Hike in December is 65.5% compared with 65.1% the previous day. As is known, higher rates tend to have a downward pressure on gold.

As for the data, the US Census Bureau reported that the preliminary estimates of retail sales and food service in the US in September, adjusted for seasonal variations and trading-day differences amounted to $ 459.8 billion, an increase of 0.6 percent compared to the previous month and were up 2.7 percent (± 0,9%) higher than in September 2015. Total sales for the period from July 2016 for September 2016 increased by 2.4 percent (± 0,5%) compared with the same period a year ago. During the period from July 2016 to August 2016 percent change was revised from 0.3 percent to 0.2 percent.

Gold reserves in the largest investment fund SPDR Gold Trust rose on Thursday by 0.28 percent, reaching the level of 961.57 tons.

The cost of the October futures for gold on COMEX rose to $ 1251.0 per ounce.