Gold futures decline on stronger greenback, higher rates expectation

Source: Xinhua| 2018-04-21 03:50:41|Editor: Mu Xuequan
Video PlayerClose

CHICAGO, April 20 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange closed lower on Friday, as the U.S. dollar drifted higher and higher U.S. interest rates are expected by traders.

The most active gold contract for June delivery dropped 10.5 U.S. dollars, or 0.78 percent, to close at 1,338.3 dollars per ounce.

The U.S. dollar index, which measures the buck against six rivals, went up 0.37 percent to 90.277 as of 2000 GMT.

Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall.

Adding further pressure on bullion, a U.S. central banker said the Federal Reserve should keep raising interest rates this year and next to keep the economy from overheating and financial stability risks from rising.

Higher rates dent the appeal of non-interest yielding bullion while lifting the dollar, in which it is priced.

As for other precious metals, silver for May delivery fell 7.6 cents, or 0.44 percent, to settle at 17.163 dollars per ounce. Platinum for July was down 8.3 dollars, or 0.88 percent, to close at 931.8 dollars per ounce.