Gold falls

LONDON. — Gold fell to over one-month lows yesterday as the dollar rose on expectations of a US interest rate hike in December, while platinum was trading at a discount to palladium for the first time since 2001.

Spot gold was down 0,2 percent at $1,278.36 per ounce at 0607 GMT, after hitting its lowest since August 16 earlier in the session, as strong US economic data took sheen off the yellow metal.

US gold futures for December delivery fell 0,5 percent to $1,281.30.

“In the near term, we’re still looking at interest rates for direction,” said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.

“Unless North Korea does something, I think gold will be under pressure.”

In the latest development on North Korea, France’s foreign minister on Wednesday urged US President Donald Trump to focus on raising diplomatic pressure on Pyongyang.

The dollar and US bond yields rose after President Trump proposed the biggest US tax overhaul in three decades and as strong economic data added to the case for a rate hike by the Federal Reserve later this year. A stronger dollar makes bullion more expensive for holders of other currencies, while higher interest rates lead to higher bond yields and dampen demand for non-yielding gold. In other metals, platinum dipped 0,1 percent, to $914,85 per ounce after hitting its lowest since July 20, while palladium eased 0,4 percent to $922,60.