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Gold and silver fall as stronger dollar and Fed uncertainty weigh
Comex gold dropped $66 to an intraday low of $4,011, while silver slid nearly $1.9 to $56.86.
Gold and silver prices fell on Tuesday, as investors waited for the US Federal Reserve policy meeting and a stronger US dollar reduced the appeal of precious metals for holders of other currencies, LiveMint Markets reported.
Comex gold futures were down $66 per troy ounce to an intraday low of $4,011, while silver futures tumbled nearly $1.85 per troy ounce to $56.86, as markets kept pricing in higher interest rates.
The US Dollar Index traded around 101.5, with markets implying more than a one-third probability of a Fed rate hike later this year. Interest-rate swaps currently suggest about a one-in-three chance of a 25 basis point hike, reflecting unusually high uncertainty so close to the decision.
LiveMint Markets said expectations for higher rates have pressured metals because they do not provide yield, and recent easing of Middle East tensions after the US paused daily strikes on Iran tempered safe-haven demand, while higher crude oil prices have continued to influence inflation concerns.
Latest closeGold $4,078.90 ▲0.3%|Silver $58.70 ▲0.1%|WTI crude $81.92 ▼8.3%