Gold Drops Near 10-Month Low As Dollar Wins After Italy Vote

London (Bloomberg via PTI): Gold today fell to a near 10-month low as the dollar strengthened following Italy’s vote against constitutional reform that prompted the country’s prime minister to resign.

Gold was down 1 per cent at USD 1,165.29. It touched USD 1,160.80 on Thursday, the lowest since early February. Silver also fell 1 per cent to USD 16.57 an ounce.

Bullion initially rose 0.9 per cent, before falling 1.3 percent to USD 1,162.45 an ounce as the dollar gained against the euro.

While the referendum has raised concerns over Italy’s future in the euro region, the nation’s political and legal system means a “no” vote is unlikely to trigger a quick exit.

Gold has been whipsawed this year following unexpected political votes in major economies. It jumped after Britain’s vote to quit the European Union in June, then tumbled as Donald Trump’s presidential election last month boosted bets for higher US interest rates. Prices also fell Monday as European equities and base metals advanced.