Gold futures fell to the lowest in eight months as improving U.S. economic growth curbed demand for the metal as a haven asset.

Investor interest that pushed prices as much as 16 percent higher this year is waning as economic expansion bolsters the case for the Federal Reserve to raise interest rates, cutting the appeal of the metal as a hedge against inflation. Money mangers pared their bullish wagers on the metal for three straight weeks, while open interest in New York futures and options is near the lowest in five years.

Fed policy makers will meet Sept. 16-17. Research this week from the Fed Bank of San Francisco suggested investors may be underestimating how quickly policy makers could raise rates.

Gold for December delivery fell to $1232.10 an ounce (-0.72%) on the Comex in New York.