Gold falls to 7-month low on outlook for rates
London (Sept 12) Gold today dropped to a seven-month low and silver sank to the lowest since June 2013 as the Federal Reserve moves closer to raising interest rates, eroding demand for precious metals as alternatives to stocks and bonds.
Gold fell 0.3 per cent to $1,237.74 an ounce, after earlier dropping to the lowest since January 23. Silver also slipped 0.5 per cent to $18.61 an ounce after declining to the lowest price since June 28, 2013.
Data today may show US retail sales improve. The Bloomberg Dollar Spot Index rose to a 14-month high as traders incrased bests that the Fed will raise borrowing costs by July 2015 after holding them near zero since 2008.