Investing.com - Gold prices were pressured by a stronger dollar and a rising interest rate in Asian afternoon Wednesday.
Gold futures for April delivery on the Comex division of the New York Mercantile Exchange fell by $2.9, or 0.22%, to $1,328.30 a troy ounce by 12:15am ET.
Benefited from higher treasury yields, the US dollar index that tracks the greenback against a basket of currencies rose to a week’s high of 89.79, up 0.17% in Wednesday’s mid-day in Asia.
The minutes of Federal Open Market Committee January meeting that are due Wednesday is expected to gather some attention as it is set to explain statement on ‘further gradual’ hikes and may bring volatility to the market.
In a rising interest rate environment, investor appetite for gold weakens as the opportunity cost of holding the precious metal increases relative to interest-bearing assets such as bonds.
The forex market is also focused on the expected supply of USD 250 billion U.S. dollar worth of new debt this week, as such auction would be a key indicator of investors’ appetite for U.S. assets.
Asian equities traded slightly higher following a decline in U.S. stocks overnight. Volatility was limited however as market range bound in early trade.
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