Gold Drops Below $1185 as U.S. Rate Hike in Focus

Gold on Tuesday hovered near the previous session’s lows and was heading for a second straight monthly fall, pressured by expectations the U.S. Federal Reserve will increase interest rates this year.

Spot gold was little changed at $1,186.15 an ounce by 0017 GMT, after falling as much as 1.4 percent to $1,182.05 on Monday.

Fed Chair Janet Yellen said on Friday that an increase in the central bank’s benchmark rate “may well be warranted later this year” given continued improvement in U.S. economic conditions, sending the dollar higher and pulling gold further away from a recent three-week peak.

CNBC

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