Investing.com – Gold prices remained subdued on Tuesday, pressured by a rise in the dollar amid growing expectations that the Federal Reserve would hike interest rates by the year-end.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange fell by $2.51 or 0.20%, to $1,244.19 a troy ounce.
Gold futures continued to trickle lower, as a growing number of market participants expect the Federal Reserve to raise rates by the end of the year in the wake of upbeat comments from Federal Reserve officials.
On Tuesday, Boston Fed President Eric Rosengren said low interest rates do pose financial stability concerns that central bankers and the private sector must take seriously.
On Monday, Bill Dudley, head of the New York Federal Reserve downplayed the recent slowdown in inflation, adding that halting rate increases at this point would be dangerous.
Bullish comments from Fed officials have surprised investors as economic data has failed to show consistent U.S. economic growth.
The precious metal has continued to slip from its recent high, after the Federal Reserve hiked rates last Wednesday, leaving the door open for an additional rate this year.
In a rising interest rate environment, investor appetite for gold weakens as the opportunity cost of holding the precious metal increases relative to other interest-bearing assets such as bonds.
The rise in the dollar to session highs against its peers, weighed on commodities across the board.
silver futures 0.35% to $16.44, a troy ounce while platinum futures fell by 0.56% to $922.
Copper dipped by 1.18% to $2.559, while natural gas, rose to $2.904, up 0.28%.