US gold hovers at 2-1/2 month low

Spot gold prices hovered at 2 1/2 month lows close to $1,560 an ounce in New York on Thursday afternoon as fund selling resumed, forcing bullion to break from its traditional inverse correlation with the dollar. Spot gold was down 0.35 percent at $1,568.65 an ounce at 4.43 pm EST (2143 GMT), building on its biggest one-day decline in nearly three months on Wednesday.
US gold futures for February delivery settled down $9.70 at $1,577.20 an ounce. Spot bullion hit a session low of $1,560.36, a low last seen at the end of September when the last major sell-off took place.