28 Apr 2022
Gold Plunges to 10-Week Low amid Robust Dollar and Looming Fed Interest Rate Hikes
The Index Today
On Thursday, gold prices plummeted to a 10-week low due to strengthening dollar and upcoming interest rate hikes by the U.S. Federal Reserve which has dampened the demand for the bullion.
Spot gold dipped by 0.5% to $1,877.18 per ounce by 0519 GMT, reaching its lowest since February 16, reported Reuters. U.S. gold futures also slid by 0.6% to $1,877.70.
GoldSilver Central’s Managing Director Brian Lan contended that gold, which had been riding far above $1,900 until now, has sustained blows from a sturdy dollar and the impending interest rate hikes by the Federal Reserve with the central bank looking to raise the rates by 50 basis points at its next monetary policy meeting in May.
Meanwhile, the dollar index soared to five-year highs, close to surpassing the 103.82-mark which would send it to levels last seen in late 2002, reported Reuters. Palladium rose by 1.5% to $2,234.98, while platinum and silver dropped by 0.6% and 0.8% to $912.22 and $23.09 per ounce respectively.