(Bloomberg) -- Gold dropped below $1,300 an ounce in London for the first time since June 24, the day after the U.K. voted to leave the European Union.
Bullion for immediate delivery fell as much as 1.2 percent and was at $1,296.56 an ounce by 1:28 p.m. in London, according to Bloomberg generic pricing.
After surging 25 percent in the first half, prices have since retreated 1.8 percent amid expectations that U.S. policy makers will raise interest rates. Higher borrowing costs curb demand for the metal, because it doesn't provide any yield.
To contact the reporter on this story: Eddie van der Walt in London at evanderwalt@bloomberg.net.
To contact the editor responsible for this story: Nicholas Larkin at nlarkin1@bloomberg.net.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
