Commodities
Dollar Strengthens, Gold and Silver Prices Plunge on Wednesday
The prices of gold and silver declined sharply on Wednesday as the US dollar strengthened and expectations for Federal Reserve tightening increased. Spot gold fell by 1.12% to around $4,308.40 per ounce, while spot silver dropped by 2.88% to near $65.00.
The rise in the US dollar index to its highest point in approximately two months was driven by traders factoring in the Fed's September rate hike as part of a broader tightening cycle rather than a single adjustment.
Cheaper crude oil prices also contributed to the decline in gold and silver, with Brent crude falling to near $98.16 per barrel and WTI crude dropping to around $89.01 per barrel.