Gold falls toward 8-mth low as US Fed outlook strengthens dollar
Washington (Sept 19) Gold today fell toward an eight-month low after the Federal Reserve raised its interest-rate forecasts this week, strengthening the dollar.
Gold lost 0.2 per cent to USD 1,222.71 an ounce. Prices are down a third week and reached USD 1,216.03 yesterday, the lowest since January 2. Silver also lost 0.1 per cent to USD 18.51 an ounce. It reached USD 18.29 yesterday, the lowest since June 2013. Gold fell 0.6 per cent this week as the US central bank raised its estimate for the federal funds rate even as policy makers kept a pledge to hold borrowing costs near zero for a considerable time after ending debt buying.
The dollar soared to a 14-month high versus the euro yesterday.