Gold falls near 3-month low on US outlook

London (Sept 11)   Gold today fell toward a three-month low as investors assessed the outlook for an improving US economy.
Gold lost 0.1 per cent to USD 1,248.05 an ounce. It fell to USD 1,243.95 yesterday, the lowest since June 5. Silver also slipped by 0.7 per cent to USD 18.83 an ounce after reaching USD 18.82, the lowest since June 5.

Holdings in silver-backed exchange-traded products rose to 19,897.5 metric tonnes yesterday, the highest since November.

Prospects for higher borrowing costs in the US and the European Central Bank’s announcement of more stimulus helped the Bloomberg Dollar Spot Index reach a 14-month high yesterday.

Data this week may show US retail sales improved. The Federal Reserve, which has been cutting bond buying, meets September 16-17.

Source: TheHindu