Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold dropped 1.1% for the third session, closing at a two-week low of $1,231, as traders hedged against the possibility that the Fed may raise interest sooner than previously forecast.

At tomorrow's conclusion of their two-day meeting on monetary policy, the FOMC is likely to leave interest rates unchanged. But given recent improvements in data on U.S. job growth and inflation, the central bank may issue a more hawkish statement signaling the intention to hike at the upcoming meetings in April or June.

The dollar ticked up ahead of the Fed's policy statement, pressuring gold and other commodities denominated in it for international trade. Higher rates would strengthen the dollar by increasing its yield, attracting foreign exchange investment.

The dollar's rise was capped by a Commerce Department report showing weaker retail sales in January and February, raising new questions about the economy's momentum. The Atlanta Fed's GDPNow model lowered its forecast for real Q1 growth to 1.9% from 2.2% last week.

The other precious metals also fell, with silver dropping 1.7% while platinum and palladium slid 0.6% and 0.4%, respectively.

At the Comex close: April gold fell $14.10 to $1,231; May silver dropped 26 cents to $15.26; April platinum slid $5.60 to $959.80; and June palladium slipped $2.10 to $570.70 an ounce.