Gold futures fell to the lowest since January as the outlook for higher U.S. interest rates and a stronger dollar cut demand for precious metals as hedges against inflation. Silver dropped to a four-year low.
Money managers cut their bullish gold wagers for six straight weeks, the longest exit in more than four years, government data show. Global holdings in exchange-traded products backed by the metal last week shrunk to the lowest since 2009 as prices move close to erasing their 2014 gain.
Bullion, which rallied in the first half of the year amid escalating tensions in Ukraine and the Middle East, posted its first quarterly decline in 2014. Silver slumped 12 percent this month, the biggest decline since April 2013, when both metals fell into a bear market.
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