Gold Spooked by Fed Rate Fears Heads for Worst Month Since 2013

Bullion has worst daily losing streak in more than a year.

by Sharon Cho and James Poole, Bloomberg
Mine Web

Gold is on track for its biggest monthly decline since June 2013 after Federal Reserve Chair Janet Yellen said the improving US economy meant another interest-rate hike would probably be in order “in the coming months,” pushing the dollar to the highest since March.

Bullion for immediate delivery fell as much as 1% to $1,200.03 an ounce, the cheapest since Feb. 17, before trading at $1,203.22 by 11:51 a.m. in Singapore, according to Bloomberg generic pricing. Prices are down for the ninth day, the worst run in more than a year, and have lost 7% in May.

Yellen affirmed in comments Friday what a number of her officials said last week, that evidence of strength in the US economy meant tighter monetary policy could now be considered.

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