Gold prices plummet to 6-year low

New York (Nov 29)  Gold's monetary value fell to its lowest point in about six years Friday. Due to what industry analysts say is a strengthening U.S. dollar, an expected rate hike from the  Federal Reserve  and an apparent Chinese stock market slump, the precious metal's prices temporarily fell to a longtime low of  $1,051  an ounce.

The commodity's price closed at  $1,055.90  on the New York Mercantile Friday, CNN reports. The price indicates gold's decline in popularity since reaching its highest price of  $1,890  in 2011.

The metal hit its lowest value in  Feb. 2010  at  $1,045  an ounce.

The drop is suggested to have occurred due to a possible rate hike to be decided by the  Federal Reserve  in the coming weeks. In preparation, investors have decided to sell before they are affected. Reserve executives will meet starting  Dec. 15  to discuss the decision.

Gold is primarily sold worldwide using U.S. dollars, making the currency's strengthening value a key factor in the commodity's performance on the market. A strong dollar, the  Wall Street Journal  reports, makes gold more expensive in the global market and less likely to sell.

In terms of  China's  stock market, a steep decline Friday may keep big investors from spending their money on gold. The Shanghai Composite Index ended with a 5.5 percent decrease, its biggest drop since August due to the announcement several major firms were under investigation,  BBC  reports.

Source: Kitco.com