“Interest rate expectations for this year have tightened considerably, which is weighing on gold”said Craig Erlam, OANDA markets analyst.
Gold prices fell more than 6% from February 2, when bullion had hit a nine-month high.
Federal Reserve officials said on Tuesday that the US central bank will have to continue raising interest rates gradually and suggested that continued price pressures, fueled by a hot labor market, could push borrowing costs higher than expected. they had anticipated.
Gold is traditionally considered a hedge against inflation, although rising interest rates increase the opportunity cost of holding the non-yielding asset.
The dollar index, for its part, rose 0.3%. A stronger greenback makes bullion, which is priced in dollars, less attractive to buyers with other currencies. Among other metals, silver lost 1.6% to $21.50 an ounce and platinum 0.9% to $922.72, while palladium fell 1.6% to $1,472.76, its lowest. level since August 2019.
Source: Ambito
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