Gold touched a one-month low after Federal Reserve Chair Janet Yellen told a congressional hearing that a move on interest rates in December is a “live possibility” if economic data hold up.
Bullion fell in the past five quarters as a strengthening economy raised concern that the Fed would tighten policy. Last week, the Federal Open Market Committee signaled the economy may be strong enough to raise rates. Reports Wednesday showed U.S. service producers unexpectedly expanded in October at the second-fastest pace in a decade, while companies added more workers.
Gold futures for December delivery dropped 0.7 percent to settle at $1,106.20 an ounce at 1:41 p.m. on the Comex in New York, after touching $1,105.60, the lowest since Oct. 2.