Gold falls near two-month low as investors eye Fed meeting

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Gold falls near two-month low as investors eye Fed meeting
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Metal under pressure from likely interest rate hike and stronger dollar

Bengaluru — Gold prices dropped on Tuesday towards their lowest since mid-February hit in the previous session, as an imminent interest rate hike by the US Federal Reserve and a stronger dollar dulled bullion’s appeal.“Gold will come under pressure directly from higher interest rates and also indirectly from a stronger US dollar,” said Michael McCarthy, chief strategy officer at Tiger Brokers, Australia.

The dollar remained near recent 20-year highs, making gold less attractive for overseas buyers, while benchmark 10-year treasury yields on Monday hit 3% for the first time since December 2018, a key psychological milestone.

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