Gold falls to 12-week low as dollar moves up

Gold on Wednesday dropped to a 12- week low by losing 2.6 per cent as the dollar strengthened on signs the Federal Reserve may refrain from providing more monetary stimulus for the US. The gold fell by 2.6 per cent to $1,628.10 an ounce, after touching $1,621.50, the lowest since January 10. Silver also fell by 4.1 per cent to $31.90 an ounce, the biggest drop since March 14.