The price of gold was stable on Tuesday. It was scaled down by on-going prospects of interests rate hike in the U.S. These expectations strengthened the dollar but assisted at the margins by political uncertainties in Europe.
Gold is quite fragile to interest’s rate hikes because it increases the opportunity cost of grasping non-yielding bullion while bolstering the priced dollar.
The dollar index edged up by 0.3 percent, driving gold that are priced with dollar more expensive for investors excluded in the U.S. With the possibilities of a rate increase by the Federal Reserve, investors are keeping an eye on the shifting messagesthe U.S. central bank delivers when it concludes its meeting on Wednesday.
U.S. gold futures added 0.1 percent at $1,204.30. Spot gold also climbed by 0.1 percent to $1204.53 per ounce as investors look forward to Federal Reserve’s conference.
Gold may have declined for five weeks straight but it rapidly got back from its feet after a U.S. non-farm payrolls report failed to meet its positive predictions, considering on the dollar. Gold vigorously recovering on Friday highlighted its resilience.
Meanwhile in other countries, the Dutch elections are the main focus of investors, which are enhancinggold’s safe haven appeal. The anti-Islam party for freedom is perceived as having a small chance of being effective; however a firm election performance for the group would feed concerns over an unexpected outcome in French presidential elections in April and May.
Worries have elevated over one more Scottish independence election and the provoking of Article 50 in Britain, this article will formally start negotiations of Britain leaving the EU.
The world's biggest gold-backed exchange-traded fund SPDR Gold Trust edged up by 0.83 percent last Monday.
In other precious metals; Platinum plunges 0.1 percent to $939.40, Palladium dropped 0.2 percent at $747.75 and silver added more than 0.2 percent to $16.98 per ounce.