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By Bloomberg

Gold fell to a nine-month low after Federal Reserve Chair Janet Yellen reiterated that U.S. interest rates will probably increase this year. Platinum dropped to the lowest in six years and palladium slid.

Bullion futures declined for a sixth day in the longest run since November, while the Bloomberg Dollar Spot Index is at the highest since April. Yellen said Wednesday prospects are good for further improvement in the U.S. labor market. She will speak to the Senate Banking Committee on Thursday.

Higher borrowing costs curb gold’s allure because the metal doesn’t pay interest or give returns like other assets such as bonds and equities. While Yellen again acknowledged concerns over the situation in Greece, the Greek parliament’s vote to accept further austerity required for a new bailout clears one obstacle to raising U.S. rates.

“There has been a few hiccups along the way but the basic bearish story for gold over the past two years is that the Fed is moving towards interest rate normalization,” Matthew Turner, an analyst at Macquarie Group Ltd., said by phone from London. “Yellen seemed to brush off the possibility that Greece or China could push them off course so late in the day.”

Gold futures for delivery in August lost 0.4 percent to $1,142.40 an ounce by 7:50 a.m. on the Comex in New York. They reached $1,141.20, the lowest since Nov. 7. Trading volume was 26 percent below the 100-day average for the time of day.

Bullion for immediate delivery fell 0.5 percent to $1,144.05 in London, according to Bloomberg generic pricing.

Fed Rates

The Fed has held interest rates near zero for more than six years and last raised them in 2006. Yellen expects subsequent increases to be gradual.

Platinum for October delivery fell as much as 1.5 percent to $1,006.50 an ounce, the lowest since February 2009, and was last at $1,007.80. The metal has fallen 17 percent this year, partly as production increases in South Africa, the biggest miner.

Prices fell a third day even as data showed European car- sales growth accelerated to the fastest pace in 5 1/2 years in June. Registrations rose 15 percent, the Brussels-based European Automobile Manufacturers’ Association said Thursday. Platinum and palladium are mostly used to curb harmful emissions from vehicles.

Palladium for September delivery dropped as much as 2.8 percent to $625.15 an ounce, the lowest since November 2012. Silver for the same delivery month was 0.8 percent lower at $14.93 an ounce.