Gold falls highest at a 10-month low after 3 years

MCX tips

On Thursday, Gold hit its lowest since February. Which extended losses after its biggest monthly decline, as a surge in oil prices boosted bond yields, denting interest in non - yielding gold as an alternative investment. The precious metal fell more than 8 percent in November, hurt by a jump in the dollar and Treasury yields after Donald Trump's surprise election to the U.S. presidency last month, and by expectations that the Federal Re serve is gearing up to lift interest rates for only the second time in a decade in December. Spot gold was down 0.8 percent at $1,163.31 an ounce at, having earlier reached a 10 - month low of $1,160.38. U.S. gold futures for February delivery were down $8.3 0 an ounce at $1,165.60.

Bond yields have surged since Republican candidate Trum

p's shock election victory, which led to speculation that his commitment to infrastructure spending would spur growth and inflation. That pushed the dollar sharply higher, with the U.S. unit hitting its highest since 2003 last week. While it retreated on Thursday, it remains at highly elevated levels. U.S. 10 - year Treasury yields hit 16 - 1/2 month highs on Thursday. Germany led euro zone government bond yields higher as an 8 percent surge in oil prices boosted expectations of higher inflation.