LONDON: Gold fell on Thursday as the dollar and US bond yields surged after strong US economic data and support from US Fed Chair Janet Yellen for higher US interest rates.

Better than expected jobs and housing data reinforced the view that the US economy is sufficiently robust to warrant rate rises. A strong dollar makes gold more expensive for holders of other currencies.

Spot gold fell 0.2 percent to $2,201.76 an ounce by 1609 GMT, having dropped by 1.1 percent in the previous session, its biggest fall since Dec 15. Silver was 0.7pc lower at $16.91 an ounce, platinum fell 0.8pc to $954 and palladium was flat at $748.47.

Published in Dawn, January 20th, 2017