LSE: Gold Drops Below USD1200 On Fed Rate Hike Talk
WASHINGTON (Alliance News) - Gold prices continued to fall Tuesday morning amid mounting speculation that the Federal Reserve will hike rates in either July or September.
A number of Fed officials have indicated they believe that economic weakness in the US has been due to transitory factors that will soon abate.
A rate hike will likely strengthen the dollar at gold's expense.
Gold for July was down USD10 at USD1195, having dropped from USD1230 a week ago.
Echoing Friday's remarks from Fed Chief Janet Yellen, Federal Reserve Vice Chairman Stanley Fischer said Monday the central bank expects to follow a "gradual and relatively slow" rate hike path.
