GOLD has fallen one per cent, pressured as the US dollar strengthened on renewed expectations that the Federal Reserve will raise US interest rates for the first time in nearly a decade.
WEAKNESS in other commodities also weighed on gold, which rallied last week after the Fed left rates at ultra-low levels, keeping a lid on the opportunity cost of holding non-yielding bullion.
Gold failed to maintain those gains after a Fed official emphasised that a rise had only been postponed.
Spot gold was down 0.7 per cent at $US1,125.22 an ounce at 3:17pm EDT (0517 Wednesday AEST), while US gold futures for December delivery settled down 0.7 per cent at $1,124.80 an ounce.
Platinum slid the most among precious metals, down more than 3.00 per cent to a six-and-a-half-year low. Some traders cited news that the falsification of Volkswagen AG US vehicle emission tests could affect 11 million of its cars worldwide. Platinum is used in diesel catalysts.
Platinum was down 3.4 per cent at $US932.75 an ounce, after falling to its lowest since January 2009 at $US929.50.
Via Herald Sun