Gold and silver dip on dollar strength

Gold and silver prices edged lower as the US dollar firmed against the euro.

The yellow metal closed down USD 2.75 at USD 1,194.75 per oz in London, while silver ended 19 cents lower at USD 16.42 per oz, with US markets closed for the Thanksgiving holiday.

According to FastMarkets, the declines came as the dollar climbed slightly, creeping back above 80 euro cents, lifted by a decision by oil producers cartel OPEC not to cut production, which dampened sentiment in commodities, which warned of further gold price falls to come.

Analyst Tom Moore said that with the US dollar gaining strength following OPEC's decision not to implement cuts, a retest of support from the previous double bottom at USD 1,180 per oz is likely.

Gold trading may also have been impacted by proposals to require Switzerland's national bank to significantly up its holdings in the metal, with a referendum set for Sunday.

Commerzbank said that according to the latest surveys, a 'yes' vote is considered unlikely, meaning that hopes of the Swiss central bank buying up massive quantities of gold are likely to come to nothing.