Gold Declines to One-Week Low on Bets Fed May Cut U.S. Stimulus
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Gold fell to the lowest in more than a week as better-than-expected U.S. economic data reinforced the case for the Federal Reserve to slow stimulus.
The Institute for Supply Management’s non-manufacturing index rose to 58.6 in August, a report from the Tempe, Arizona-based group showed. The median forecast called for a drop to 55. A reading greater than 50 indicates expansion. Gold has declined 18 percent this year on speculation that the Fed will scale back bond buying as the economy improves. The Bloomberg Dollar Index, a gauge against 10 major currencies, rose as much as 0.6 percent.