Gold’s price ‘remains under pressure’

Gold headed for its biggest monthly decline in two years as the Federal Reserve moved closer to boosting U.S. interest rates.

The U.S. economy expanded at a faster pace in the second quarter and wiped out a previously reported contraction for the start of year, government data showed Thursday. Figures on Wednesday showed assets in exchange-traded funds backed by gold headed for the biggest monthly drop since 2013.

Investors fled gold in July, with prices falling 7.1 percent on weakening Chinese demand and the prospect of higher U.S. rates, which curb the appeal of gold because it doesn’t pay interest. Fed officials, considering when to begin tightening, said Wednesday that the economy is making progress, keeping market expectations focused on a move as soon as September.

“Gold remains under pressure, within a percent or so of recent lows,” said Tai Wong, the director of commodityproducts trading at BMO Capital Markets Corp. in New York.

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