Gold falls as Dennis Lockhart comments add to September rate focus

LONDON: Gold today fell after a US Federal Reserve voting member said the bank is close to raising interest rates, boosting the dollar and cutting demand for the metal.

Gold lost 0.1 per cent to $1,086.94 an ounce and silver also declined 0.5 per cent to $14.49 an ounce.

Fed Bank of Atlanta President Dennis Lockhart said that it would take a significant deterioration in data for him not to endorse raising rates in September.

A gauge of the dollar reached the highest in more than four months.

Bullion is trading near a five-year low as the central bank prepares to raise borrowing costs for the first time since 2006, reducing the metal's allure because it doesn't pay interest or give returns like other assets such as equities and bonds.

Jobs data from the labour department on Friday may give more indication on when the Fed will increase rates.