Spot gold prices fall to five-and-a-half-month low and edge closer to $1,200 an ounce following US interest rake hike hints

Francesca Washtell
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A man shows a 10-gram gold ingot which h
Spot gold prices dipped in morning trading (Source: Getty)

The price of gold fell to a more than five-month low again this morning, edging closer towards $1,200 an ounce, as US interest rate hints led the dollar to rise against most major currencies.

Spot gold prices fell by around one per cent to below $1,205 an ounce this morning, before a slight rebound that took it back about $1,207 at the time of writing.

Indications from the US federal open market committee chair Janet Yellen that an interest rate hike is on its way led the greenback to spike against currencies such as the euro, against which it was trading at a high of €0.9446, up more than 0.2 per cent.

Read more: Here's how high gold prices could go if Trump wins

Gold miners Randgold Resources, Fresnillo and Polymetal International tumbled between three per cent and six per cent in the FTSE 100 this morning, as the broader UK mining index fell almost three per cent, touching its lowest level in a week.

A dollar surge also brought down prices on Monday. Gold has suffered since Donald Trump's election a fortnight ago, with prices tracking down almost 10 per cent from a high of $1,337 an ounce in the immediate aftermath of his White House victory.

A Trump win was widely expected to prompt a leap in gold prices, as they are seen as a good store of value in times of uncertainty, which analysts argued a Republican win over Hillary Clinton would bring about.

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