Gold hits month low as Fed rate hike hint drives dollar

LONDON: Rising expectations that the US Federal Reserve will raise interest rates again this year drove gold to a month low on Wednesday, after its biggest one day loss in almost two years during the previous session.

Platinum meanwhile hit parity with palladium for the first time since 2001 on diverging demand expectations. Platinum is used more heavily in the diesel engines that have fallen out of favour since 2015's Volkswagen emissions-rigging scandal.

Spot gold sank 0.7 percent to $1,284.37 per ounce by 1354 GMT after tumbling 1.3 percent in the previous session. Earlier it hit its lowest since Aug. 25 at $1,282.23.