Gold Prices Remains Under Pressured By Stronger Dollar

Investing.com – Gold prices were pressured by a stronger dollar and a rising interest rate in Asian afternoon Wednesday.

for April delivery on the Comex division of the New York Mercantile Exchange fell by $2.9, or 0.22%, to $1,328.30 a troy ounce by 12:15am ET.

Benefited from higher treasury yields, the that tracks the greenback against a basket of currencies rose to a week’s high of 89.79, up 0.17% in Wednesday’s mid-day in Asia.

The minutes of Federal Open Market Committee January meeting that are due Wednesday is expected to gather some attention as it is set to explain statement on ‘further gradual’ hikes and may bring volatility to the market. 

In a rising interest rate environment, investor appetite for gold weakens as the opportunity cost of holding the precious metal increases relative to interest-bearing assets such as bonds.

The forex market is also focused on the expected supply of USD 250 billion U.S. dollar worth of new debt this week, as such auction would be a key indicator of investors’ appetite for U.S. assets.

Asian equities traded slightly higher following a decline in U.S. stocks overnight. Volatility was limited however as market range bound in early trade.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.