Gold prices down

New York (May 11)  Gold dropped on Friday, notching its second consecutive weekly drop, with selling triggered by a sharp rise in the US dollar and analysts’ expectation that the Federal Reserve could raise interest rates next year.

Platinum group metals also fell on news that some miners in top platinum producer South Africa are returning to work, offering hope that the country’s longest and most costly strike could end soon.

Heightened geopolitical tensions underpinned bullion prices after Russia’s President Vladimir Putin flew to Crimea for parades marking the Soviet victory in World War Two, his first visit since annexing the peninsula from Ukraine.

Pressure on gold came from the euro’s sharp decline off a 2-1/2 year high against the dollar extended for a second day, after European Central Bank chief Mario Draghi on Thursday threatened more monetary stimulus.