Bengaluru — Gold prices fell slightly on Wednesday, extending the decline from the previous session, as investors interpreted comments from Federal Reserve chairman Jerome Powell to mean that the US may raise interest rates more frequently than expected this year. Spot gold was 0.1% lower at $1,317.01/oz at 5.06am GMT. Gold closed down 1.1% and fell to as low as $1,313.26/oz in the previous session, the lowest since February 9. US gold futures were flat at $1,318.50/oz. "We might be entering a short-term period in the gold market where we could see more dollar strength, higher bond rates and a return to equity weakness, a familiar backdrop that could pressure gold lower," INTL FCStone analyst Edward Meir said in a note. The dollar index, which measures the greenback against a basket of six major currencies, rose on Tuesday to its highest since February 9 after Powell gave testimony to the US Congress that indicated the possibility of four interest rate increases this year rather tha...
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