Gold prices tumbled to a nine-month low sending precious metals producers into a tailspin after the dollar extended its gains on the back of strong US economic data.

US durable goods orders rebounded last month and jobless claims remained below 300,000 for 90 consecutive weeks, supporting the case for a Fed rate rise next month. In its wake, gold prices, which are extremely sensitive to rising interest rates, fell by as much as 2.5pc to $1,181.84 an ounce.

Shares in Fresnillo surrendered 38p to £12.44, Polymetal International dropped 21p to 741p, Randgold Resources fell 130p to £56.85 and mid-cap Hochschild slipped 8.6p to 213.9p.

Source: The Telegraph