Gold Price Today: Strong Dollar Pushes Gold to $1,185.35 per Ounce

The gold price fell on Tuesday as unexpectedly strong US economic news pushed the dollar’s value up relative to a basket of other currencies. Specifically, spot gold dipped 2 percent, to $1,185.35 an ounce, Reuters reported. Meanwhile, US gold futures for June delivery dropped to $1,187.30 an ounce.

Continued economic recovery in the US increases the likelihood that the Federal Reserve will enact a key funds rate hike. A rate hike is likely to diminish the appeal of safe-haven commodities that do not pay interest.

“We maintain the view that the third quarter is likely to be the weakest quarter for gold, given that we expect the Fed to start increasing rates in September,” said Barclays plc (LSE:BARC) in a note.