Gold extends losses, drops 1% to lowest in a month

Holdings of the SPDR Gold Trust fell 0.3 per cent to 990.32 on Monday

Gold extended losses on Tuesday, falling 1 per cent on a stronger dollar and US Treasury yields. Spot gold hit its lowest level since August 11 at $1,730.50 per ounce and was down 1 per cent at $1,732.30 by 12.31 GMT. US gold futures fell 0.9 per cent to $1,736.50.

Benchmark US Treasury yields gained for a fourth consecutive day to hit a more than three-month peak, and the dollar index rose 0.3 per cent, making gold more expensive for holders of other currencies.

The dollar also competes with gold as a 'safe-haven'. The rise in the 10-year US Treasury yield "provides