Gold at 1-week lows as dollar inches higher
Investing.com - Gold prices slumped on Wednesday, on the back of an extended dollar rally, as growing expectations of an interest rate increase in March remained front and centre.
Gold for April delivery on the Comex division of the New York Mercantile Exchange shed $17.05 or 1.37%, to trade at $1,233 a troy ounce by 14:02 EST.
Gold extended losses from the prior session, as growing expectations of a March rate hike pushed the dollar higher and weighed on the yellow-metal, after Fed Governors’ Brainerd and Powell continued the hawkish rhetoric delivered by several key officials over the past few days.
Fed Governor Lael Brainard said Wednesday evening the Fed could raise rates "soon," while Fed Governor Jerome Powell said Thursday that “the case for a rate increase for March has come together”.
According to investing.com’s Fed rate monitor tool, nearly 80% of traders expect a rate hike in March, compared to just over 60 percent on Wednesday.
Meanwhile, upbeat U.S. jobless claims data heaped further pressure on gold prices, after the labor department said on Thursday, Initial jobless claims fell by 19,000 to 223,000 for the week ended February 25.
Analysts expected jobless claims to rise by 1,000 to 243,000 last week.
The stronger greenback pressured commodity prices across the board, as silver futureslost 3.76% or around 70 cents, to trade at $17.79 a troy ounce.
Copper traded lower at $2.69 while platinum traded at $998.25 down 3%.