Precious-Gold dropped on Thursday as Fed Chair Janet Yellen signaled the central bank is on track to raise interest rates this year, thereby damping demand on the non-interest metal.
The yellow metal hit a low of $1144.52 an ounce, while it currently trading at $1146.23, after opening at $1147.17.
The outlook for the U.S. labor market and economic conditions enables the Fed to hike borrowing cost this year, where the turmoil in China and Greece is less likely to affect the U.S. economy, Yellen said on Wednesday.
The end of near-zero interest rate era that continued for six years is putting pressure on gold that does not provide interest to its holders.
Yellen’s hawkish remarks boosted the dollar to its highest level since April, where the dollar index rose for a fourth straight session to 97.55 to resume its rebound after hitting a bottom of 95.55 the previous week.
In addition, good news from Greece, which passed reforms asked from European creditors, dented the appeal of the metal as a safe haven.