Gold Around $1280 On Fed Rate Speculation

Gold held losses near a two-month low on speculation that the U.S. Federal Reserve will raise borrowing costs next year, strengthening the dollar and damping demand for an alternative investment.

Bullion for immediate delivery fell as much as 0.2 percent to $1,274.82 an ounce, and traded at $1,276.25 at 8:18 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 raise interest rates sooner than anticipated.

Data today may show orders for durable goods in July rose at the fastest pace since March 2011 after a Fed measure of economic activity yesterday beat analyst estimates, sending U.S. equity benchmarks to records. The dollar climbed to an 11-month high against the euro as the first rate increase since 2006 is forecast for next year, while the European Central Bank weighs additional measures to support growth.

Bloomberg

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