Gold hovered near its lowest in three months on Tuesday after sharp overnight losses as the dollar traded at 14-month highs against a basket of major currencies, dimming the metal’s appeal as a currency hedge.
Spot gold was little changed at $1,255.20 an ounce by 0028 GMT. The metal closed down 1 percent on Monday, after earlier hitting $1,251.24 – its lowest since June.
The dollar was boosted after a Federal Reserve study on interest rates and as the sterling was pressured amid ongoing jitters that Scotland could vote to secede from the United Kingdom.
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