Gold drifts lower on firmer dollar

Singapore, April 19 (BNA): Gold prices fell on Wednesday as the US dollar regained some ground, while market participants assessed the chances of the Federal Reserve raising interest rates again in May before pausing.

Spot gold was down 0.1% at $2,003.99 an ounce, as of 0526 GMT. And US gold futures fell 0.2 percent to $ 2015.80.

The dollar index rose 0.1%, making gold less affordable for buyers who hold other currencies, Reuters reported.

“Expectations have already been priced in for a 25 basis point hike, leaving a lot of focus on whether a rate stop will be signaled next,” said Yeap Jun Rong, market analyst at IG.

“While this may provide a prop for gold prices, given the recent rally and overextended technical conditions, the possibility of some (price) pullback on validation of the Fed’s interest rate outlook may remain on the table.”

Among other precious metals, spot silver fell 0.2% to $25.16 an ounce, platinum fell 0.7% to $1075.33, and palladium increased 1.1% to $1626.18.


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