Expectations the Federal Reserve will pick up the pace of raising borrowing costs lifted Treasury yields and the U.S. dollar Thursday — while dampening gold futures.
Market Watch reported that April gold fell $5.80, 0.4 percent, to $1,326.20 an ounce.
Gold had finished higher Wednesday. But minutes from a Fed meeting showed officials expect an “increased likelihood” of further interest rate increases, which heightens the prospect of a rate rise in March. The expected rate hikes helped push the U.S. 10-year Treasury note yield toward the 3 percent mark, according to Market Watch. Those rising bond yields can make investing in gold less attractive, since it offers no yield.
Gold prices were also hurt as the dollar rallied Wednesday.