Gold drops below $1,700 on stronger dollar, rate-hike bets

BENGALURU: Gold prices fell below the key $1,700 level on Thursday for the first time since July, as a rising dollar and expectations for aggressive interest rate hikes eroded its appeal. 

Spot gold was down 0.8 percent at $1,696.76 per ounce by 13:58 p.m. ET, having dropped to its lowest since July 21 earlier in the session. US gold futures settled 1 percent lower at $1,709.3. 

Gold is considered a safe store of value during times of economic uncertainty, but a higher rate environment tends to take the shine off the asset as it does not pay any interest.