Gold falls as strong dollar, Federal Reserve hike expectations rise
Gold took a dip this Friday, thanks to the US dollar holding near a six-week high and rising expectations that the Federal Reserve might hike interest rates again.
Spot gold slipped 0.3% to $4,527.60 per ounce, with futures for June delivery also down by 0.3%.
Basically, when the dollar gets stronger, gold becomes pricier for everyone else, which is why prices are sliding.
High oil, U.S.-Iran talks stoke inflation
Inflation concerns are sticking around, fueled by high oil prices and U.S.-Iran talks with uncertain prospects.
Markets now see a 60% chance of another Fed rate hike by December.
Analyst Edward Meir summed it up: "What's been driving (gold) lower has been the stronger dollar, which in turn is being elevated by ongoing high interest rates pretty much around the world,".
Silver dropped 0.2% to $76.53 per ounce and platinum fell 0.5%, so it's not just gold feeling the pressure right now.