Gold Slumps to $1266 on U.S. Factory Output

Gold and silver futures tumbled to the lowest since June as U.S. manufacturing in August expanded at the fastest pace in three years, bolstering prospects for the economy and damping demand for the metal.

The dollar jumped to the highest since January against a basket of 10 currencies. A gauge of manufacturing orders increased by the most in a decade, Institute for Supply Management data showed today.

Gold has dropped this quarter on concern that the Federal Reserve is closer to raising interest rates. In August, holdings in exchange-traded products backed by the metal slumped for the fourth time in five months even as conflicts escalated in Ukraine and the Middle East.


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