Gold Remains Close to Two-Week low as Expectations of Hike in Interest Rates in the U.S. Lingers
On Wednesday, the yellow metal remained at almost a two weeks low following a drop of two percent in the earlier session. The status of gold remained low as the strengthening US economic data brings in hopes of THE Fed Reserve increasing the record low interest rates.
The dollar gained against a basket of currencies remaining strong. The bullion was pushed to its greatest one-day drop since April 30 this year.
Even the spot gold remained little changed lingering at $1,188 per ounce by 0307 GMT. On Tuesday, the price slipped to $1,185.35 which is its lowest since May 12.
Howie Lee, an analyst at Phillip Futures said, "I think the Fed would raise rates at least once this year and it's likely in September."
Lee said, although recent data shows that the economic activities in the U. S was picking pace after a slack in the first-quarter yet the general picture still remains soft. Owing to this the Federal Reserve may require more confirmation before they raise the interest rates.
For the second month in a row in April, a measure for business investment spending in the US increased. The consumer confidence for this month also edged higher which added signs of an improving US economic growth. Adding to the strength even the sales of new homes in the US rose in the previous month.
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