Gold fell on Monday to near a recent four-year low as the dollar index rose to its highest since mid-2010 on speculation that the U.S. Federal Reserve will act before other major central banks to tighten monetary policy.
Silver prices also tumbled, with the metal touching its lowest since March 2010 at $15.72 an ounce and its cheapest level compared to gold in more than five years.
Spot gold was last down 0.3 percent near $1,168 an ounce, while U.S. gold futures for December delivery ended down $1.80 at $1,169.80. Strength in the U.S. dollar knocked gold below key support at $1,180 an ounce on Friday, sparking a wave of selling that took prices as low as $1,161.25 an ounce.
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