Gold retreated from an 11-month high earlier yesterday as bullion’s appeal as an inflation hedge decreased after a surprise drop in US unemployment rate to a four-year low and tumbling crude futures.
The metal fell after data showed the US unemployment rate unexpectedly dropped to 7.8 percent in September.
Brent crude’s second sharp losses in three days also prompted some gold investors to cut bullish bets after bullion failed to break above $ 1,800 an ounce following several attempts this week.
US crude was down $ 2.42 at $89.29 a barrel by 1545 GMT, having swung from $ 89.15 to $ 91.71.
Brent crude was down $1.60 at $ 110.98 a barrel.
Spot gold was down 0.4 percent at $ 1,781.10 an ounce by 1601 GMT, having earlier hit an 11-month high above $ 1,795.