Gold prices fell on Friday on the back of tumbling oil prices on recession fears. A strengthening US currency as well as rallying stocks markets influenced investors to liquidate bullion investment, reports Economic Times.

Gold was at USD 731.45 an ounce, down USD 4.05 from New York`s notional close on Thursday, when it rose for a fourth straight day to its strongest in a week at USD 776.30 an ounce. New York gold futures fell USD 6.7 an ounce to USD 731.9.

U.S. gross domestic product shrank at an annual rate of 0.3% for the third quarter, the sharpest fall in the world`s largest economy in seven years, spurring a broad commodities sell-off on concerns over weakening fundamentals.

Platinum fell more than 4% as slowing economies around the globe and the widespread credit crisis caused the largest auto industry companies to slash full-year profit targets, warn of job losses and push for speedy government handouts.  Platinum was trading at USD 783.00 ounce, down USD 34 from New York`s notional close.

It has lost more than 60% of its value since hitting a lifetime high of USD 2,290 in March, mainly due to worries about falling demand for autocatalysts. As the strong yen forced Japanese carmakers Mazda and Mitsubishi to slash full-year targets, struggling U.S. automakers were looking to obtain billions from the U.S. government to help them survive.

More than 60% of global platinum use goes to autocatalysts to clean exhaust fumes.