Gold struggles near 8½-month lows on fund outflows

Spot gold edged up 0.3% to US$1,218.30 an ounce by 0215 GMT after dropping for two straight days but spot prices remained near an 8½-month low of US$1,208.36 reached in the previous session - Reuters Photo.

SINGAPORE: Gold ticked up on Tuesday but was stuck near its lowest in almost nine months, hurt by outflows from the top bullion backed exchange-traded fund as investors adjust positions on concerns of higher US interest rates and strength in the dollar.

Investors pulled out of SPDR Gold Trust, the top gold-backed exchange-traded fund, for a second day in a row, with the fund's holdings falling to 774.65 tonnes on Monday – its lowest since December 2008.