Gold at $1278 as Markets Assess Fed’s Intentions

Gold fell toward a two-month low, extending two weeks of losses, as investors assessed whether the U.S. economy is strong enough for the Federal Reserve to raise rates. Silver sank to the lowest in more than 10 weeks.

Bullion for immediate delivery lost as much as 0.5 percent to $1,274.45 an ounce, and traded at $1,277.80 at 9:06 a.m. in Singapore, according to Bloomberg generic pricing. The metal on Aug. 21 dropped to $1,273.14, the lowest level since June 18, as the minutes of the Fed’s last meeting signaled that policy makers may increase borrowing costs sooner than anticipated.

Gold on the Comex in New York wasn’t trading as CME Group Inc., the world’s largest futures market, halted all of its Globex electronic-trading markets except for Malaysian equity-index derivatives, it said on its website.

Bloomberg

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