Gold hits three week low

Source:  Dawn.com Published in Business & Economy on Thursday, July 21, 2016

LONDON: Gold fell to its lowest in three weeks on Wednesday on higher equities and as the dollar hit a four-month high following strong US economic data, which raised expectations that the Federal Reserve may raise rates before the end of the year.

Spot gold dropped as much as 1.4 per cent to $1,313.20 an ounce earlier and by 1450 GMT was down 1pc at $1,319.06.

The dollar hit its highest for four months, still benefitting from data on Tuesday showing US housing starts surged more than expected in June, underpinning a theme of strength in the US economy.

Spot silver fell 1.7pc to $19.55 an ounce. Spot platinum was down 0.8pc at $1,082.50 an ounce, while palladium, which touched an eight-and-a-half month high on Tuesday, was up 0.9pc at $661.10 an ounce.