Gold Futures Drop After U.S. Manufacturing Unexpectedly Expands

Gold fell for the first time in three days after a report showing unexpected growth in U.S. manufacturing bolstered optimism in the economy and eroded demand for the precious metal as a haven asset.

The Institute for Supply Management reported its factory index was at 50.6 last month, topping analyst estimates’ of 48.5. Prices also fell as the dollar headed for the biggest gain in two weeks against a six-currency index. Prices touched a record $1,917.90 an ounce on Aug. 23 amid escalating debt woes in the U.S. and Europe.