Gold set to reach 3-year low on Fed hike hopes
Precious metals traded mostly higher on Wednesday while gold was in the red, set to reach the lowest levels since 2013. The falling price of gold is mostly stimulated by investors’ expectations of the U.S. Federal Reserve interest rate hike expected in December. The rate hike hopes are among the main factors driving the dollar upwards, which, consequently, diminishes the price of gold.
The gold spot price shed 0.08%, changing hands for $1,187.70 per ounce at 12:28 p.m. CET. Silver added 0.32% to trade for $16.68 per ounce at 12:29 p.m. CET. Meanwhile, platinum gained 0.38% at $923 per ounce at the same time while palladium traded 0.65% in the green at $768.50 per ounce at 12:28 p.m. CET.
The dollar index spot inched up 0.05% at 101.01 at 12:31 p.m. CET. The greenback traded 0.13% lower against the euro at 1.0660 at the same time while it rose 0.45% against the British pound at 1.2347 at 12:32 p.m. CET.