Gold prices dropped over 1% on Tuesday

Gold prices dropped over 1 per cent on Tuesday, extending a ten-session losing streak as a stronger US dollar and reduced expectations for near-term Federal Reserve rate cuts weighed on demand. Spot gold fell 1.5 per cent to $4,340.63 per ounce, down about 22 per cent over the past ten sessions, while US April gold futures also slipped 1.5 per cent to $4,340.90.

The dollar’s strength made bullion more expensive for holders of other currencies. At the same time, markets factor in potential rate hikes amid concerns that the Iran conflict could drive global inflation, according to Ilya Spivak, head of global macro at Tastylive. Spot gold has lost roughly 18 per cent since the US-Israeli war on Iran began on 28 February.

Other metals also fell, with spot silver down 3.4 per cent to $66.80, platinum 2.1 per cent to $1,841.68, and palladium 2.7 per cent to $1,395.25.

Oil prices remained above $100 a barrel after Iran denied negotiating with the US to end the Middle East war, supporting inflation concerns that typically boost gold, though high interest rates continue to limit demand. Investors cut their bets on a December Fed rate hike to around 13 per cent, from just above 25 per cent in the previous session.

Attribution: Reuters