Gold prices extended losses on Wednesday as the U.S. dollar strengthened after hawkish comments from a Federal Reserve official dampened expectations for a March interest rate cut, while traders awaited comments from more Fed speakers this week.
Spot gold was down 0.2% at $2,023.49 per ounce, as of 0415 GMT, after stooping 1.3% in the previous session - its biggest single-day decline since Dec. 4, 2023.
Flow of funds to the U.S. dollar have been a key driver impacting the gold price, said Michael Langford, chief investment officer at Scorpion Minerals Ltd, forecasting bullion to trade around $2,000/Oz in the near term.
With geopolitical tensions escalating, safe-haven flows could provide a floor for the gold price.
However, "the short-term fate of the gold price is likely in the hands of the bond market," Tim Waterer, chief market analyst at KCM Trade, wrote in a note.
Persons:
Michael Langford, Christopher Waller, Tim Waterer
Organizations:
U.S ., Federal Reserve, Scorpion Minerals Ltd, Treasury, KCM, U.S
Locations:
U.S