LONDON: Gold hit its lowest since February on Thursday, extending losses after its biggest monthly decline in more than three years, as a surge in oil prices boosted bond yields, denting interest in non-yielding gold as an alternative investment.

The precious metal fell more than 8 per cent in November, hurt by a jump in the dollar and Treasury yields after Donald Trump’s surprise election to the US presidency last month, and by expectations that the Federal Reserve is gearing up to lift interest rates for only the second time in a decade in December.

Spot gold was down 0.8pc at $1,163.31 an ounce at 1505 GMT, having earlier reached a 10-month low of $1,160.38. US gold futures for February delivery were down $8.30 an ounce at $1,165.60.

Silver was 0.7pc lower at $16.36 an ounce, while platinum was down 0.9pc at $902.80 after hitting its lowest since Feb. 8 at $893.50 earlier in the day. Palladium was down 2pc at $753.50, having earlier touched its highest since June last year at $774.60.

Published in Dawn, December 2nd, 2016