Gold slid to its lowest in a week on Wednesday, extending steep overnight losses triggered by a stronger dollar and stock market, with traders now waiting for minutes of the Federal Reserve’s policy meet for clues on the U.S. rate outlook.
Spot gold fell 0.3 percent to $1,204 an ounce by 0643 GMT, after earlier dropping to a one-week low of $1,203.35. The metal lost 1.5 percent on Tuesday, snapping a five-day rally.
Demand for bullion weakened as the dollar climbed to a two-week high against a basket of major currencies, with the euro tumbling on news the European Central Bank was looking to accelerate the pace of money printing to buy government bonds over the next two months.
The greenback was also supported by strong U.S. housing data on Tuesday that stoked hopes the Fed could raise rates soon.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.