Gold fell to its lowest level in almost three months on Tuesday as a stronger US dollar overall crumpled the appeal of the precious metal. The greenback extended its gains on speculation the Fed will submit rises in interest rates of signs of economic recovery is strengthening.
The US dollar index, which measures the strength of the greenback versus a trade-weighted basket of six major currencies, hit maximum levels in 11 years from 98.18 Tuesdays.
Demand for the greenback remained shored after the last US employment report bound expectations higher interest rates.
Spot Gold immediate delivery fell as much as 0.6 percent to $1,159.85 an ounce in Singapore. On the Comex, gold futures for April delivery touched a session low of $1,156.20 a troy ounce, a level not seen since December 1.
Investors are considering data for clues about when the central bank would raise rates near zero. Policymakers are best placed tightening earlier and more gradual than later and faster, Fisher said Monday. Fed policymakers will face on March 17. 18.
Gold dropped 2.6 percent on Friday after a separate report showed the jobless rate in the US slipped to a minimum of seven years. A seventh day is the longest decline since May 2013.
On Monday, gold marked up $ 2.20, or 0.19%, to close at $ 1166.50 amid tense negotiations between Greece and the Eurogroup of finance ministers on proposals for Greeks reform.
The dollar reached multi-year highs in the series of currency; increased risk of US rates helps to push into emerging markets.
Indian Rupee currency was weakened on Tuesday for a second day versus the dollar opened at 62.80 per dollar and touched a low of 62.81, a level last seen on January 8.
Amidst a weak tendency abroad and for the purpose to book profits by speculators on the Multi Commodity Exchange, gold for delivery in the far Month June facilitated by Rs 117, or 0.45 per cent to Rs 26,085 10 grams.
For commodity market tips, MCX live tips, Gold-Silver prices and trading market latest news & updates with 100McxTips, follow us on Twitter @100mcxtips and Like on Facebook. And to contact the reporter on this story email at firstname.lastname@example.org or Call: +91-761-4012307