Gold and other precious metals dropped on Thursday, with palladium shedding more than 8 percent, as investors flocked to the dollar-driven by bets the U.S. Federal Reserve will stick to aggressive rate hikes.
Spot gold fell 1.6 percent to $1,823.14 per ounce by 01:51 p.m. EDT (1751 GMT). U.S. gold futures settled down 1.6 percent at $1,824.60.
“Dollar is rallying as things potentially look negative in the U.S., which is hurting gold. Also, the market is realising the likelihood of seeing pretty aggressive interest rate increases,” said Bart Melek, head of commodity strategies at TD Securities.
Rival safe-haven dollar climbed to fresh 20-year highs—making gold less appealing for other currency holders driven by concerns tighter monetary policies to tame surging inflation will hurt the global economy.
…