Gold extends slide after Fed dampens March rate cut hope

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Gold prices extended losses on Wednesday as the US dollar strengthened. (AFP)
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  • Spot gold was down 0.2% at $2,023.49 per ounce, as of 0415 GMT, after stooping 1.3% in the previous session - its biggest single-day decline since 4th December 2023
  • The US Dollar Index, which gauges the dollar's strength against a basket of major currencies from key US trading partners has surpassed the 103.30 level

Dubai, UAE – Gold prices extended losses on Wednesday as the US dollar strengthened after comments from a Federal Reserve official dampened expectations for a March interest rate cut, Reuters reported.

Spot gold was down 0.2% at $2,023.49 per ounce, as of 0415 GMT, after stooping 1.3% in the previous session – its biggest single-day decline since 4th December 2023.

Spot silver fell 0.4% to $22.81 per ounce.

Platinum declined 0.3% to $892.37 and palladium slipped 0.2% to $934.44. As the sister metals approach price parity, the rate at which platinum is displacing palladium in the manufacture of autocatalysts is slowing, a trend which is likely to persist through this year.

The US Dollar Index, which gauges the dollar’s strength against a basket of major currencies from key U.S. trading partners, is consistently advancing and has surpassed the 103.30 level, marking new highs for the year. Concurrently, US Treasury yields are increasing, with the 10-year note yield reaching 4.05%.

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