Gold trades below six-week high as dlr, rates outlook weighed

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Gold fell from a six-week high as investors weighed expectations for rising US interest rates against a weaker dollar. Gold slipped 0.4 per cent to $1,226.33 an ounce. On Tuesday, it reached $1,238.32, the highest price since October 23, as a weaker dollar and global stock markets spurred demand for a store of wealth.

Silver fell 0.4 per cent to $17.00 an ounce.Meanwhile, the Bloomberg dollar spot index slipped for the third day after reaching a five-year high this week. The Federal Reserve meets next week as policy makers debate the timing of the first interest-rate increase in eight years. Rising rates cut gold’s allure because bullion generally offers investors returns only through price gains, while the precious metal typically moves inversely to the greenback.             

Daily Pioneer
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