Gold fell to an eight-month low as the outlook for higher U.S. borrowing costs strengthened the dollar, damping demand for a store of value. Silver sank to a four-year low and platinum dropped to the lowest this year.
Gold for immediate delivery lost as much as 0.6 percent to $1,208.40 an ounce, the lowest price since Jan. 2 and within 0.6 percent of erasing its gains for the year. The metal traded at $1,211.57 at 9:47 a.m. in Singapore, according to Bloomberg generic pricing.
Bullion is headed for its first quarterly loss this year as the Bloomberg Dollar Spot Index rose to a four-year high and investors cut holdings in the largest gold-backed exchange-traded product. Federal Reserve officials last week raised interest-rate projections for 2015, even as the central bank maintained a pledge to keep rates low for a considerable time.