Gold Sharply to Three Month Low as Dollar Rally Damps Demand

Gold and silver futures fell as the dollar’s rally to a 13-month high damped demand for the precious metal as an alternative investment.

The greenback jumped to the highest since July 2013 against a basket of 10 currencies. Gold dropped 1.6 percent last week as the dollar climbed 0.8 percent.

The metal has declined this quarter on concern that the Federal Reserve is closer to raising U.S. interest rates. Policy makers meet Sept. 16-17. Holdings in exchange-traded products backed by gold fell in the past two weeks as a truce in Ukraine reduced demand for a store of value.

Bloomberg

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