Gold down to $1317 on Interest Rate Fears

Gold ticked lower on Tuesday as investors continued to fret over the possibility of an earlier-than-expected hike in U.S. interest rates, while palladium was trading near a 13-year high on supply worries.

A strong U.S. jobs report last week spurred speculation the Federal Reserve could increase rates soon on the back of a solid economic recovery. A hike would encourage investors to withdraw money from non-interest-bearing assets such as gold.

Spot gold had fallen 0.2 percent to $1,317.80 an ounce by 0307 GMT after closing flat in the previous session.  “Expectations of an early rate hike by the Fed are continuing to weigh on investors,” said ANZ analyst Victor Thianpiriya.

Reuters

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