Gold drops from 3-month high on profit taking

Zee Media Bureau

New Delhi: Gold prices fell close to 1 percent on Tuesday, retreating from a three-month high on profit-taking after a two-day rally triggered as Federal Reserve did not seem in hurry to raise interest rates. Gold, as a non-interest-paying asset, benefits from ultra-low interest rates. 

Spot gold was little changed at $1,161.96 an ounce by 0037 GMT, after a two-day rally. It hit a three-month high of $1,169 in the previous session.

The dollar languished around three-week lows against a basket of currencies.

Among other precious metals, silver fell as much as 1.2 percent, after hitting a 3-1/2-month high of $16.10 last week.

Platinum fell 1.6 percent, dropping from a one-month high of $998.50 an ounce in the previous session. Palladium also eased.