Gold falls, awaiting fresh clues on U.S. rate rise

31-Aug (Reuters) – Gold fell on Monday extending last week’s slide as indications the Federal Reserve may still raise interest rates this year, despite recent market turmoil, offset a retreat in the dollar.

Spot gold fell 0.4 percent to $1,129.01 an ounce by 1348 GMT, while U.S. gold futures for December delivery dropped $5.50 an ounce to $1,128.50. Gold fell 2.3 percent last week after a slide in Chinese equities rattled wider markets.

The Federal Reserve left open the possibility of a September rate rise at a central banking conference at Jackson Hole, Wyoming, at the weekend, though several officials indicated that prolonged financial market turmoil might delay such a move.

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