Gold held declines, heading for its biggest monthly drop in two years as the U.S. economy expanded at a faster pace in the second quarter, bolstering expectations of a rate rise this year and boosting the dollar.
Bullion for immediate delivery was little changed at $1,089.29 an ounce at 8:36 a.m. in Singapore, according to Bloomberg generic pricing. It’s down 7.1 percent this month after last week falling to $1,077.40, the lowest since February 2010.
The dollar maintained gains, set for its best month since January as speculation firmed that the Federal Reserve will boost interest rates at its next meeting. Increasing rates curbs the appeal of gold as the metal doesn’t pay interest or give returns like competing assets such as equities and bonds.
Gold for December delivery, the contract with the most open interest, was little changed at $1,088.40 an ounce on the Comex in New York. Silver for immediate delivery fell 0.1 percent to $14.7372 an ounce. Platinum fell 0.1 percent to $989.03 an ounce. Palladium was little changed at $622.42 an ounce.