Gold Drops to One-month Low, Trades at $1,317.14 per Ounce

This morning, gold dropped 1.2 percent to trade at $1,317.14 per ounce, according to Reuters. Earlier in the day, the metal fell to $1,314.14 per ounce, its lowest price since February 20.

Meanwhile, US gold futures for April delivery were down $16.90 an ounce, at $1,319.

“Gold started dropping once the Fed came out with the rate news,” Natixis SA (EPA:KN) analyst Bernard Dahdah told the news outlet. “We saw increasing strength in the dollar, and 10-year U.S. yields increased quite sharply. With higher yields you get a higher opportunity cost of holding gold, and with the stronger U.S. dollar there is less of a fear of currency debasement. We could see gold dropping below $1,300 in the next month if we get the necessary U.S. data, a strengthening dollar and higher yields.”