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Gold Declines to Two-Month Low on Interest Rate Concerns

Gold fell to a two-month low in New York as the outlook for higher U.S. interest rates reduced the appeal of the metal as an alternative investment. Platinum headed for the longest run of losses in 27 years in London.

Many U.S. policy makers raised the possibility they may boost rates sooner than anticipated, minutes of the Federal Reserve’s July meeting showed yesterday. Fewer Americans than forecast applied for unemployment benefits last week, signaling the job market is making progress and bolstering the case for higher borrowing costs. The dollar reached a six month high today against a basket of 10 major currencies before trading little changed.