Gold sinks to 7.5-month low

Gold futures on the COMEX division of the New York Mercantile Exchange fell Thursday to the lowest level in seven and half months, as geopolitical tension in Ukraine eased.

The most active gold contract for December delivery lost 6.3 U. S. dollars, or 0.51 percent, to settle at 1,239 dollars per ounce.

For the fourth day in a row, gold closed down Thursday to its lowest level since Jan. 23, as traders expected the Federal Reserve to become more hawkish on interest rates after its meeting next Tuesday and Wednesday.

Analysts say that any bullish data in the U.S. could put more pressure on the precious metal in the short term. Once gold falls below the level of 1,240 U.S. dollars, which is the main support level, it would continue to fall to 1,200 U.S. dollars to find its next support.

Gold is also under pressure from a strengthening U.S. dollar as some analysts project that the dollar would continue to rise into 2015.

Silver for December delivery lost 32.7 cents, or 1.73 percent, to close at 18.599 dollars per ounce. Platinum for October delivery lost 10.3 dollars, or 0.75 percent, to close at 1,370.7 dollars per ounce.