Gold fell 2.5% to $3,918, breaking a 7-month low at $3,941, on its worst day in weeks. Breaking this support opens the door to deeper losses, with bets on an interest rate hike in 12 months and rising oil increasing inflation fears, and gold heading for a monthly loss after falling from a record high of 4,700 in 8 months. The impact of the news: negative for gold.