Gold Declines as U.S. Housing Starts Rekindle Rate Concerns

Gold futures headed for the third drop in four sessions as a jump in U.S. new-home construction boosted the case for the Federal Reserve to raise interest rates next month.

Housing starts climbed in July to the highest in almost eight years, government data showed Tuesday, indicating the industry will pick up in the second half of the year. The dollar rose as much as 0.2 percent against a basket of 10 currencies, reducing demand for bullion as an alternative asset.