LONDON: Gold fell to its weakest in 2-1/2 months on Tuesday, breaking through key support at August lows as stock markets steadied and the dollar hit a one-year high against the euro ahead of a European Central Bank meeting this week.

The metal has been underpinned by worries about the stand-off between Russia and the West over Ukraine and unrest in the Middle East, but strength in stocks and the dollar, plus weak physical demand from China and India, has offset that. Spot gold was down 1.4 per cent at $1,268.83 an ounce at 1311 GMT, having hit its lowest since mid-June at $1,265.10. US gold futures for December delivery were down $17.60 at $1,269.70.

Among other precious metals, spot platinum was down 0.6pc at $1,408.74 an ounce, while spot silver lost 1.3pc to $19.20 an ounce, having touched its lowest since June 11 at $19.11.

Published in Dawn, September 3rd, 2014