Gold prices drop 1.1% on US rate hike expectations, stronger dollar
Gold fell over 1% as expectations of US interest rate hikes and a stronger dollar weighed on the precious metal.
Key Takeaways
AIGold prices fell by more than 1% on Tuesday, amid expectations of higher US interest rates and the US dollar reaching its highest level in two months.
Spot gold declined 1.1% to $4,304.89 per ounce by this morning, according to global market data.
The drop followed signals that the US Federal Reserve is leaning toward tightening monetary policy, reinforcing expectations of interest rate hikes in the coming period.
This trend also supported the US dollar, which climbed to its highest level in two months, adding further pressure on the precious metal.