Investing.com - The price of Gold fell during on Tuesday to 1187.10, or 0.31%, over worries of increasing U.S. interest rates and a stronger dollar, according to industry analysts.
Gold prices were down just 0.3% at $1,189.10 an ounce earlier this afternoon.
The Fed is expected to raise interest rates next month and bolster the U.S. currency. This will make commodities a bit more expensive for global buyers.
The dollar index today reached a nearly 14-year peak of 102.050 last week.
Analysts said gold, as a commodity, is increasingly viewed by analysts as a risk-free asset, like U.S. Treasury notes.
The dollar/yen exchange rate completed the day at 112.46, up 0.12%, while the dollar/euro rate completed the day at dollar/euro rate was up at 1.0648 and the dollar/pound was also up at 1.2491.
The Japanese yen has fallen 8.2% versus the dollar since Donald Trump’s election as President of the U.S., enhancing profits for companies—like Toyota Motor Corp Ltd Ord (NYSE:TM), and Honda Motor Company Ltd (NYSE:HMC).—that generate big sales overseas.