Gold drops below $1 300 an ounce

London - Gold dropped below $1 300 an ounce in London for the first time since June 24, the day after the UK voted to leave the European Union.

Bullion for immediate delivery fell as much as 1.2% and was at $1 296.56 an ounce by 1:28 in London, according to Bloomberg generic pricing.

After surging 25% in the first half, prices have since retreated 1.8% amid expectations that US policy makers will raise interest rates.

Higher borrowing costs curb demand for the metal, because it doesn’t provide any yield.