Gold fell more than 1 percent to near its weakest level since early 2010 on Thursday, as the dollar jumped ahead of US economic data that is likely to strengthen expectations for an interest rate hike by the Federal Reserve in September. After a two-day meeting, US policymakers said they felt the economy had overcome a first-quarter slowdown and was "expanding moderately". A Reuters poll showed the US economy may have rebounded in the second quarter. That buoyed the greenback, making dollar-priced gold more costly for buyers using other currencies.
Spot gold dropped 1 percent to $1,084.46 an ounce by 0659 GMT, after hitting a low of $1,081.85. Bullion sank to $1,077 last week, its cheapest since February 2010, after a selloff in New York and Shanghai and has since struggled to recover above $1,100.
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