Gold Drops to One-week Low on Rising U.S. Rate Hike Speculation
Mar, 02nd 16:59
Gold futures prices resumed their decline on Thursday, on track to lose ground for a third straight session. The precious metal fell to the lowest level in more than one week, weighed down by rising expectations for a U.S. March rate increase.
Gold for April delivery dropped around 1 percent to trade below $1240.00 an ounce after Federal Reserve official Lael Brainard late Wednesday echoed her colleagues’ hawkish comments on the monetary policy. The greenback strengthened, sending the dollar index 0.4 percent higher to trade near its highest levels since Jan 4 at 102.0500.
While a strong dollar causes commodities priced in the currency less affordable for buyers using other monetary units, higher rates tend to diminish demand for non-yielding assets such as gold.
Buy Digital Put Option from 1237.00 to 1231.00 valid until 21:00 GMT March 02, 2017
The website/brand www.optionbanque.com is jointly operated by Capital Street BancClear Corporation Limited(SVG) and Capital Street Intermarkets Limited(MU). The services provided by Option Banque are provided by the two companies jointly, and all securities trading services offered by Option Banque are offered via the full services securities dealer licence Number C112010690 issued by the FSC Mauritius.