Gold Posts Monthly Drop as Fed Rate Outlook Damps Its Appeal
- Bullion prices settle with first August decline since 2009
- Purchases through gold-backed funds have slowed this month
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Gold capped its first monthly decline since May on growing expectation that the Federal Reserve will raise U.S. interest rates this year and as purchases through bullion-backed funds slowed.
It’s the first time gold has dropped in August since 2009, with the metal generally climbing on jewelry demand ahead of the wedding and festival season in India, the largest consumer after China. Prices slid 3.4 percent this month after surging 25 percent in the first half of the year as economic concerns fueled demand for the metal as a haven.