Gold Drops on Fed Rate Hike and Post Greek Deal

The gold price has fallen to its lowest in more than five years as talk of a US interest rate rise this year has led investors to sell the precious metal.

The price fell 4% to as low as $1,088.05 (£697) an ounce in Asian trade – the lowest since March 2010.

Investors turned to the US dollar, which rose on the likelihood of the Federal Reserve raising rates because of a stronger US economy.

Investors generally buy gold during times of uncertainty.

Monday was the first time the metal has traded below the key threshold level of $1,100 since 26 March 2010.

The price of platinum also fell 5% to its weakest since the global financial crisis.

via BBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza