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

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

After surging 25 percent in the first half, prices have since retreated 1.8 percent amid expectations that U.S. policy makers will raise interest rates. Higher borrowing costs curb demand for the metal, because it doesn’t provide any yield.

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