Gold Below $1225 as Fed Raises Rate Outlook

Gold retreated to the lowest level since January after the Federal Reserve increased its interest-rate projections, spurring gains in the dollar. Platinum sank to the lowest level this year.

Gold for immediate delivery lost as much as 0.6 percent to $1,216.30 an ounce, the lowest since Jan. 2, and traded at $1,223.88 at 11:41 a.m. in Singapore, according to Bloomberg generic pricing. The 14-day relative strength index held below 30 for a sixth day, signaling prices may be poised to rebound.

Gold halted a 12-year rally in 2013 as the Fed prepared to reduce the monthly asset purchases, which it did for a seventh time yesterday. Officials raised their median estimate for the benchmark federal funds rate to 1.375 percent at the end of 2015, compared with a June forecast of 1.125 percent, sending the Bloomberg Dollar Spot Index to a four-year high.

Bloomberg

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