Gold falls on dollar as Fed officials keep rate rise talk alive
Reuters - Apr 09, 2015
Gold retreated for a third straight session on Thursday on a stronger dollar after comments from U.S. Federal Reserve officials kept alive expectations for an interest rate rise some time this year despite recent weak economic data.
New York Fed President William Dudley and Fed Governor Jerome Powell on Wednesday sketched out scenarios in which the central bank could make an initial move earlier than many now expect, then move slowly on further increases.
Minutes from the Fed's March 17-18 meeting showed officials opening the door to a June rate rise.
Spot gold fell back below $1,200 an ounce after the minutes and comments and was trading down 0.7 percent at $1,193.96 an ounce at 2:39 p.m. EDT (1839 GMT).
U.S. gold for June delivery dropped $9.50 an ounce, or 0.8 percent, to $1,193.60.
"There's just this negative tone to the money flow and this is killing the gold market," said Bill O'Neill, co-founder of commodities investment firm LOGIC Advisors in Upper Saddle River, New Jersey.
