Thursday, August 21, 2014

Gold Drops to $1290 on Strong U.S. Dollar

Gold extended losses to a fifth session on Thursday to trade near a two-week low after the U.S. dollar strengthened on indications from the U.S. Federal Reserve that it could raise interest rates sooner than expected.

Spot gold fell 0.2 percent to $1,289.66 an ounce by 0020 GMT, after hitting a two-week low of $1,287.83 in the previous session. U.S. gold was down about $4 to $1,290.80.

A surprisingly strong jobs market recovery could lead the Fed to raise interest rates earlier than it had been anticipating, according to the minutes from the central bank’s July 29-30 meeting, though most officials wanted further evidence before changing their view.

CNBC

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