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Gold Declines to Seven-Month Low on U.S. Rate Outlook

Gold futures fell to the lowest since January on speculation that the Federal Reserve will raise U.S. interest rates sooner than forecast, crimping demand for a hedge against inflation. Silver slumped to a 14-month low.

More than $5.1 billion has been erased from the value of exchange-traded products backed by gold since June 30. Money mangers cut their bullish wagers on the metal for three straight weeks, while open interest in New York futures and options is close to the lowest in five years.