Gold Holds near Three-Month Low as Dollar’s Climb Curbs Demand

Gold traded near a three-month low as the dollar advanced on speculation the Federal Reserve will increase interest rates next year, curbing demand for an alternative investment. Platinum fell to the lowest since April.

Bullion for immediate delivery was at $1,255.55 an ounce at 1:49 p.m. in Singapore from $1,255.45. Prices dropped to as low as $1,251.52 on 8 September, the lowest since June 10. Gold for December delivery added 0.2 percent to $1,256.50 on the Comex.

Gold has declined 5.4 percent this quarter as the outlook for higher borrowing costs reduced demand for an inflation hedge. Fed policy makers will meet Sept. 16-17.