Gold price at four-month low at $ 1,728 an ounce
Gold continued its slump after a stronger-than-expected US jobs report last week fueled bets that the Federal Reserve may soon start cutting its massive monetary stimulus.
Spot gold fell as low as 4.4% in the first few hours of trading in Asia, but recovered to recoup about half of those losses once markets opened in New York.
At 11:15 am ET, gold was down 2.0% to $ 1,728.04 an ounce, the lowest since early April. US gold futures also fell 1.9% to $ 1,729.30 an ounce.
Silver also fell 7.5%, hitting a more than 8-month low at $ 22.50 an ounce earlier in the session. It was last down 3.7% to $ 23.44 an ounce.
Gold is losing ground as investors fear that improving US economy and rising inflation will prompt the Fed to withdraw unprecedented economic support.
Low rates are helping to make bullion more competitive against assets offering yields, while the strengthening dollar and record stock markets are also dampening demand for the safe haven metal.
