Gold Lower to $1201 on Stronger U.S. Dollar

Gold gave up some of its overnight gains on Tuesday on a stronger dollar and fears the Federal Reserve could soon raise U.S. interest rates.

The greenback got a lift from a Wall Street Journal report that Fed officials were seriously considering dropping an assurance that short-term interest rates would stay near zero for a “considerable time”.

The step might be taken at the Fed’s policy meeting next week, the report said.  Higher rates would decrease demand for non-interest-bearing bullion.


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