Gold today fell, heading for its largest monthly decline in two years, as the US Federal Reserve moved closer to boosting US interest rates.
Gold dropped 0.9 per cent to $1,086.61 an ounce and Silver lost 1 per cent to $14.67 an ounce.
Fed policy makers described job gains as solid amid an improving economy, according to a statement Wednesday.
They may raise rates as early as September. Investors cut holdings in exchange—traded funds backed by bullion for a 10th day. Metal in the funds declined 3.6 per cent this month, the most since December 2013.
Investors fled gold in July, with prices falling 7.4 per cent, on the prospect of higher interest rates and weakening Chinese demand.
Increasing rates reduce the allure of gold as the metal doesn’t pay interest or give returns like other assets such as equities and bonds.