Gold edged lower early on Monday, trading near a 5-1/2-year low, as expectations for a near-term hike in U.S. interest rates kept up the downward pressure after bullion fell the most since 2013 in July.
Spot gold was down 0.2 percent at $1,092.80 an ounce by 0019 GMT. The metal fell as low as $1,079.50 on Friday before recovering at the close. That was near last month’s trough of $1,077, its weakest since February 2010.
Bullion lost almost 7 percent in July, its deepest monthly fall since June 2013. U.S. gold for December delivery slipped 0.2 percent to $1,092.50 an ounce. Hedge funds and money managers maintained their first bearish stance in COMEX gold on record during the week ended July 28, suggesting the recent mass exodus from bullion was more than a knee jerk reaction.