(Bloomberg) -- Gold fell to the lowest since July after signs of a strengthening U.S. economy fueled speculation that the Federal Reserve is ready to slow the pace of its monetary stimulus. Silver tumbled.

Futures in New York fell as much as 2.5 percent to $1,218.80 an ounce, the lowest since July 8. U.S. manufacturing unexpectedly accelerated in November at the fastest pace in more than two years, the Institute for Supply Management’s factory index showed today. Bullion dropped 5.5 percent in November as minutes of the Fed’s latest meeting signaled officials may reduce their $85 billion in monthly bond purchases in coming months as the economy improves.

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