Gold nears 5-year low in longest weekly losing run in a decade
London (Bloomberg) - Gold today dropped to near a five-year low and headed for the longest run of weekly losses in more than a decade on speculation an improving US economy will lead the Federal Reserve to soon raise interest rates.
Gold fell 0.6 per cent to USD 1,081.75 an ounce. It reached a five-year low on July 24 and has fallen for six weeks in the longest stretch since 2004.
Silver also slid 1.2 per cent to USD 14.57 an ounce, poised for the biggest monthly retreat since September.
The metal is headed for a 7.7 per cent slump this month, the most in two years, after data on Thursday showed the US economy expanded in the second quarter.
Investors sold gold from bullion-backed funds for 11 straight days.
A gauge of the dollar’s strength climbed 2.6 percent in July and Fed officials concluded this week that the US is making progress.