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Gold Falls to Lowest Since 2010 as Rising Dollar Curbs Demand

  • Probablility of Fed raising U.S. rates next month increases
  • Higher dollar cuts demand for gold as alternative asset
One thousand gram gold bars are displayed in an arranged photograph at the Istanbul Gold Refinery in Istanbul, Turkey.
Photographer: Kerem Uzel/Bloomberg
Updated on

Gold fell to the lowest in five years as speculation that U.S. policy makers will raise interest rates next month helped boost the dollar, curbing the metal’s appeal as an alternative asset.

The greenback climbed as much as 0.3 percent against a basket of 10 currencies on Friday to near the highest since at least 2004. Odds that the Federal Reserve will increase rates next month for the first time since 2006 advanced to 72 percent on Friday, from 35 percent a month ago, Fed-fund futures data show.