Gold prices, which had reached US$ 1,156 per ounce on Thursday, the highest level over the past month, once again dipped below US$ 1,150 as the market responded to observations by US Federal Reserve chair Janet Yellen that a rate-hike was likely to be implemented before the year end.

The comment reignited fears of investors which had earlier receded when the widely expected rate-hike did not materialise in the first half of the month. While spot prices in early trading on Friday touched US$ 1,147, the price of gold futures dipped to US$ 1,133.

Over the last couple of months, the much-anticipated hike, which, when it comes, will be the first since the global economic crisis of 2008-09, had exerted downward pressure on gold prices, and analysts had expected that they may even breach the US$ 1,000 mark.

The US official said that if inflation remained stable and the economy remained strong enough to boost employment, the Fed rate would likely go up in 2015 itself. She was responding to government data which presented a mixed picture of the state of affairs. For example, new home sales were up 5.9% in August (above the predicted 1.6%), but numbers seeking unemployment benefits too rose by 3,000 last week, albeit lower than the anticipated rise of 7,000.

Prices of other precious metals too reacted to immediate factors. Silver mirrored gold’s rise and dip, but platinum fell sharply on the news of the Volswagen scandal which hit America,  as the metal is used in diesel autocatalysts. On the other hand, palladium which is used in gasoline autocatalysts was up on anticipated increase in demand.