Gold price falls on speculation that the Fed will start raising its interest rate this year

Gold price decline on speculation that the Fed will start raising its interest rate this year. The Fed released its interest rate decision on Wednesday. The Fed kept its interest rate unchanged at 0.00%-0.25%. This decision was widely expected by analysts.

The Fed pointed out that an interest rate hike in December is still on the table.

"In determining whether it will be appropriate to raise the target range at its next meeting, the Committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2 percent inflation," the Fed said in its statement.

The U.S. economic data remained mixed. The U.S. Commerce Department released personal spending and income figures on Friday. Personal spending rose 0.1% in September, missing expectations for a 0.2% gain, after a 0.4% increase in August. It was the smallest increase since January.

Consumer spending makes more than two-thirds of U.S. economic activity. Consumer spending grew 3.2% in the third quarter, after a 3.6% increase in the second quarter.

This data suggests that American consumers were cautious due to a slowdown abroad.

Personal spending was partly driven by higher demand for durable goods and services. Spending on durable goods rose 0.8% in September, while spending on services increased by 0.4%.

December futures for gold on the COMEX today declined to 1139.60 dollars per ounce.