Strong US Dollar, Interest Rate Fears Dampen Gold Price

Gold fell to almost its lowest point since December on Wednesday as a strong dollar and expectations of higher US interest rates hurt demand for the metal, Reuters reported.

Specifically, spot gold dropped 0.2 percent to hit $1,158.70 an ounce. That was just up from the previous session, which saw gold fall to $1,155.60 — its lowest since December 1. Meanwhile, US gold for April delivery also dropped, falling $2.50 an ounce to settle at $1,157.80.

“I don’t expect prices to fall below $1,150 as opportunistic buying would come in at that level,” Hamza Khan, senior strategist for ING Bank, told Reuters. “The Fed has been so evasive in nailing down a date for an interest rate hike that until we actually see some concrete plans we are going to be trading within the $1,150 to $1,250 range.”