LONDON (Reuters) - Gold fell to a one-month low as the dollar strengthened on speculation the Federal Reserve will tighten borrowing costs.
The spot price of the yellow metal was down 0.3 percent at $ 1205.86 an ounce at 07:46 GMT, after hitting a one-month low of $ 1205 earlier in the session.
Reuters quoted Harish F. "The dollar is gaining strength after last week's Fed meeting and positive data for the US economy, which is putting pressure on non-yielding assets such as gold," he said.
The dollar index, which measures the strength of the greenback against a basket of six major currencies, rose 0.5 percent. The currency rallied to a 16-month high earlier in the session, increasing the cost of gold to other currency traders.
The Fed reiterated its plans to raise interest rates in December and then raise them by another two times by mid-2019 amid strong economic performance and rising wage pressures.
Silver rose 0.1 percent to $ 14.17 an ounce. The metal fell during the previous session to its lowest level since September 18 at $ 14.06.
Palladium fell 0.2 percent to $ 1113.92 an ounce and platinum fell 0.1 percent to $ 848.50 an ounce.
