Gold Drops Below $1250 on U.S. Dollar Strength

Gold was trading near its lowest level in three months on Thursday, hit by fears of an early hike in U.S interest rates, a stronger dollar and an apparent easing of tensions over the Ukraine.

Spot gold was little changed at $1,248.95 an ounce by 0030 GMT, after dropping 0.6 percent on Wednesday, when it hit a three-month low of $1,243.56.

The dollar index was trading near a 14-month peak on Thursday as speculation has increased in recent days that the U.S. Federal Reserve could soon raise rates.

CNBC

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