Gold drops on firmer dollar as bets on US rate increase in March rise
Meanwhile, US inflation recorded its biggest monthly increase in four years on Wednesday while eurozone inflation surged to 2% in February
London — Gold prices fell on Thursday, pressured by a stronger dollar on rising expectations of a US rate hike in March, but losses were muted as investors remained friendly to bullion as a hedge against global uncertainty and rising inflation. Spot gold fell 0.5% to $1,243.20 per ounce by 11am GMT. On Monday, the metal rose to $1,263.80, its highest since November 11. US gold futures fell 0.5% to $1,243.80. "Gold is showing a bit of resilience against a triple dose of headwinds. We’ve got the dollar moving higher, yields moving up and a surge in stocks, but we’ve not seen any major downside reaction so far," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen. European stocks held near 15-month highs on Thursday and the dollar strengthened against other top global currencies on growing expectations that the US central bank will raise interest rates later in March. More Fed policy-setters, including chairperson Janet Yellen and vice-chairperson Stanley Fischer, we...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.