TEMPO.CO, Jakarta-Gold prices in the COMEX New York Merchantile Exchange division is down by more than one percent on Monday, September 28.

The most active gold contract for December shipment is down by $13.9 or 1.21 percent to $1,131.7 per ounce.

Xinhua news reported metal market is down on Monday’s trade. Gold becomes one of the commodity that is experiencing a significant decline since September 9, following the investigation of seven large banks by Swiss authority related to the price manipulation in gold trades.

The falling of price is also triggered by the statement from a Federal Reserve official that predicted the rise in interest rate this year.

William Dudley, Federal Reserve Bank of New York President and CEO, said the central U.S. bank will possibly increase interest rate this year, and expects to be valid next month.

William is the Vice Chairman and a permanent member of the Federal Open Market Commission (FOMC), a group that is responsible for the country’s monetary policy formulation.

Generally, the increase of interest rate will boost the exchange rate of dollar. Analyst say dollar and gold usually moves in the opposite direction. If dollar strengthens, then gold price is expected to fall.

ANTARA