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Gold Drops To Lowest Since August

Gold futures dropped to their lowest in four months amid universal expectations the Federal Reserve will raise interest rates in December.

Recent hawkish comments from Fed official hint at three more rate hikes in 2018 as long as inflation is stable.

The Fed meets December 12-13 to announce its latest policy decision.

Gold was down $12.80 at $1265.10 an ounce.

The Commerce Department released a report on Tuesday showing the U.S. trade deficit widened more than expected in the month of October.

The report said the trade deficit widened to $48.7 billion in October from a revised $44.9 billion in September. Economists had expected the deficit to widen to $47.5 billion.

Activity in the U.S. service sector grew at a slower than expected rate in the month of November, the Institute for Supply Management revealed in a report released on Tuesday.

The ISM said its non-manufacturing index dropped to 57.4 in November from 60.1 in October, although a reading above 50 still indicates growth in the service sector. Economists had expected the index to dip to 59.0.

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