Gold Price Drops Below USD1200 On Fed Rate Hike Talk
Washington (May 26) 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.