Gold slipped beyond one percent to a 10 ½ month low after the Federal Reserve appeared hawkish on U.S. interest rates, starting a jump in Treasury yields and sent the dollar to a 14-year peak. Spot gold reached a 10 ½ month low of $1,122.35 per ounce, and fell 1.2 percent at $1,130.72.
U.S. gold futures for February delivery slipped 2.9 percent at $1,129.80, depicting a strong decline as it ended positive before the Fed announcement. Bullion dropped in the run-up to the Fed meeting after Donald Trump’s election to the U.S. presidency which started a rally in the greenback and an increase in assets recognized as higher risks, such as stocks, at the expense of the precious metal. SPDR Gold Shares declined by nearly ten percent from mid-November.
Silver fell 5.2 percent at $15.95 per ounce. Platinum slipped 2.8 percent at $897.60 and palladium dropped 2.3 percent at $703.
The material has been provided by InstaForex Company – www.instaforex.com