Gold Eases Below $1085 as U.S. Rate Worries Weigh

Gold dropped for a third session in four on Tuesday, closing in on a 5-1/2-year low, with selling pressure supported by expectations that the Federal Reserve is set to raise interest rates this year.

Investors looked past data on Monday that showed U.S. manufacturing activity falling short of estimates, instead awaiting the crucial nonfarm payrolls number due on Friday.

Spot gold slipped 0.3 percent to $1,082.8 an ounce by 0042 GMT, near last month’s low of $1,077, the weakest since February 2010.  U.S. gold for December delivery fell 0.6 percent to $1,082.50 an ounce.