Gold fell to a two-month low in the longest run of declines since June in London on the outlook for higher U.S. interest rates that strengthened the dollar. Platinum headed for the longest run of losses in 27 years.
Many U.S. policy makers raised the possibility they may boost rates sooner than anticipated, minutes of the Fed’s July meeting showed yesterday. The dollar climbed against 10 major currencies after the minutes, and was little changed after reaching a six-month high today. Futures traders are seeing more chance of rising interest rates by the middle of next year.
Fed Chair Janet Yellen will provide her take on the latest data on labor markets in a speech tomorrow at a meeting of central bankers in Jackson Hole, Wyoming. Gold slid 28 percent last year on expectations U.S. stimulus would be reduced as the economy strengthens. Prices rose 6.6 percent this year, partly as unrest in Ukraine and the Middle East increased haven demand.
The market is still highly sensitive to expectations of what the Fed will do and when. The physical market is still extremely quiet.
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