Gold falls after U.S. data as focus shifts back to rate rise

18-Aug (Reuters) – Gold fell on Tuesday, as the dollar rebounded following upbeat U.S. housing data that supported views of a looming interest rate increase by the Federal Reserve.

U.S. housing starts rose to a near eight-year high in July as builders ramped up construction of single-family homes, the latest indication of an improving economy.

Spot gold snapped initial gains and was down 0.5 percent at $1,111.71 an ounce by 1419 GMT, while U.S. gold for December delivery fell 0.7 percent to $1,110.20 an ounce.

Spot silver was the worst-performing precious metal, dropping 3.7 percent to a 10-day low of $14.70 an ounce, also pressured by a six-year low in copper prices.

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