Commodities
Gold Prices Tumble Amid Stronger Dollar, Rate Hike Fears
Gold prices fell by 0.5% to $4,056.03 per ounce on Tuesday, weighed down by a stronger dollar. The decline in gold comes as traders anticipate a potential interest rate hike at the Federal Reserve's upcoming meeting.
The U.S. Federal Reserve is set to begin its two-day policy meeting on Tuesday and is expected to hold interest rates steady on Wednesday. However, expectations for a rate hike of at least 25 basis points have risen to 36.3%, up from 16% a week ago, according to CME FedWatch.
President Donald Trump has called on the Federal Reserve to lower interest rates, stating that the U.S. should have the lowest interest rate in the world. The stronger dollar is making greenback-priced bullion more expensive for holders of other currencies.