Investing.com – Gold prices were lower for a third straight session on Thursday amid heightened expectations for a midyear rate hike by the Federal Reserve in spite of recent data pointing to a slowdown in economic growth.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were at $1,195.7, after falling to session lows of $1,192.6.
New York Fed President William Dudley said Wednesday that the timing of a rate hike depends on economic data and added that a rate hike in June could still be possible if the labor market recovery remained strong.
Fed Governor Jerome Powell said he would be willing to start tightening policy despite current low levels of inflation, adding the Fed could act in June if economic data over the next two months showed that the recovery remained on track.
Meanwhile, Wednesday’s minutes of the Fed’s March meeting showed that several officials believe the economic outlook is likely to warrant an interest rate hike in June.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.41% to 98.65.
Gold prices rose to seven-week highs on Monday boosted by hopes that recent economic reports pointing to a slowdown in growth, including an unexpectedly weak jobs report for March, would prompt the Fed to delay a rate hike.
A delay in raising interest rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn’t offer investors any similar guaranteed payout.
Elsewhere on the Comex, silver futures for May delivery dropped to $16.26 a troy ounce, while copper for May delivery eased up to $2.736 a pound.
Image Source: reuters.com, Source: investing.com
