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- Gold stuck near 3-month low as dollar strength weighs
Gold stuck near 3-month low as dollar strength weighs
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Loading...Gold hovered near its lowest in over three months on Wednesday, hurt by consecutive losses in the last seven sessions as a robust dollar and expectations of higher U.S. interest rates curbed appetite for the metal.
Bullion has taken a hit from stronger-than-expected U.S. nonfarm payrolls data that renewed expectations the Federal Reserve would begin to increase interest rates in June.
Higher rates could dent demand for assets that do not pay interest such as gold, and boost the dollar.
The U.S. dollar hit a near 12-year peak against the euro and touched its highest level against the Japanese yen in nearly eight years on Tuesday, buoyed by the European Central Bank's bond-buying program, as well as expectations for a mid-year rate hike.
Other precious metals have also taken a hit along with gold. Platinum slumped to its lowest since July 2009 on Tuesday, while silver fell to a two-month low in the same session.
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