CHICAGO, Oct. 30 (Xinhua) -- Gold futures on the COMEX Division of the New York Mercantile Exchange dropped on Friday as U.S. dollar strengthened, eroding gold's demand of hedge. Silver and platinum both fell.
The most active gold contract for December delivery slid 6.70 U.S. dollars, or 0.6 percent, to finish at 1,040.40 dollars an ounce.
Dollar regained strength after the report that the U.S. consumer spending plunged in September by the largest amount in nine months. The Commerce Department said on Friday that spending dropped 0.5 percent in September, the first decline in five months.
Meanwhile, disappointing consumers' confidence raised more concerns about the economy recovery. The Reuters/University of Michigan consumer sentiment index fell to 70.6 in October from 73.5 in September.
The negative economic data helped dollar go up with the dollar index, a gauge measuring the greenback's value against a basket of major currencies, standing at 76.49 when gold floor trading closed, up 0.425, reducing gold's demand of hedge.
Plummeting stock and energy markets both put spillover pressure on the precious metal. December silver was down 40 cents to 16.255dollars per ounce. January platinum lost 11.90 dollars to 1,326.30dollars an ounce.
