The price of gold on Tuesday morning is moderately reduced, according to trading data. The strengthening of the dollar puts pressure on the quotes of the precious metal, while the markets continue to evaluate the plans of the US Federal Reserve System (FRS) at the key rate.
As of 7:47 Moscow time, the price of April gold futures on the New York Comex exchange decreased by $4.25, or 0.23%, to $1,820.65 per troy ounce. May futures for silver fell 0.53% to $20.683 an ounce.
The dollar index (the exchange rate against a basket of currencies of six countries – US trading partners) grew by 0.13%, to 104.81 points. A stronger dollar makes gold less available to buy in another currency.
Markets continue to be affected by traders’ expectations of the Fed’s monetary policy. According to CME Group, 74.5% of analysts expect a new rate hike in March – again by 25 basis points, to 4.75-5% per annum. At the same time, 25.5% expect an increase of already 50 basis points.
The regulator started a cycle of rate hikes last year. Now investors are watching the rate of increase.
Gold is sensitive to Fed rate signals. The actions of the regulator affect the dollar exchange rate, on which the price of the precious metal depends. Traditionally, a rate hike supports the dollar and puts pressure on gold.