Settle at $ 1,065.00 gold fell $ 110 an ounce, or a little of 10% from where they were trading before the announcement of the interest the Fed rate last month, which opened the door to the high rate - which will be the first of its kind in nine years - when the bank will hold its next meeting less In December December.
The likelihood that the Fed will raise rates from near zero, where it has been since December 2008, before the end of the year and paid a large futures speculators or investors "managed money" such as hedge funds to increase significantly bearish bets on the metal.
Higher interest rates strengthen the value of the dollar makes gold less attractive as an investment because the metal does not result in the production of futures traders have been hammering this home by dumping an unprecedented 130,000 lots or the equivalent of about 368 tons of gold in just three weeks.
She said more than 40% of hedge funds to their short positions, raising bets that gold will be cheaper in the future to more than 10 million ounces. According to the weekly CFTC Commitment of Traders data speculators also cut purchases, prompting the market to the second largest net short position than ever.
The hedge funds were net short in July and early August for the first time since at least 2006, when the Commodity Futures Trading Commission first began tracking the data.