Gold futures prices added to overnight losses on Wednesday, falling to a seven-week low as investors expectations of an early interest rate hike by the U.S. Federal Reserve pushed the dollar to a near two-month high.
Gold for June delivery on the Comex Exchange sank to an intraday low of $1,222.50 a troy ounce, a level not seen since April 6. It last stood at $1,223.80.
Spot gold was little changed at $1,226.41 per ounce. The metal fell to $1,223 earlier in the session, the lowest since April 7.
The probabilities of a rate rise from the Fed for June stood at about 40% Wednesday morning, compared with 30% a day earlier and compared with only 4% a week ago, according to market futures. July probabilities were about 60%.
Market players close attention to comments a total of Fed officials later in the day to find more references about the timing of a rate hike lends US .
Philadelphia Fed President Patrick Harker speaks about the economy at an event in Philadelphia at 13: 00GMT, or 09 a.m. ET. President of the Minneapolis Fed Neel Kashari must be submitted comments on Petroleum Conference Williston Basin of North Dakota at 15: 40GMT, or 11:40 ET, while the president of the Dallas Fed, Rob Kaplan talks Houston at 18: 00GMT, or 14:00 ET.
The dollar stood near a two-month high against a basket of currencies on Wednesday after strong housing data supported the US if the Fed to raise rates anytime soon.
The sales of US single-family homes registered their biggest jump in 24 years in April, playing more than 8 ½ years as purchases increased in general terms, a sign of growing confidence in the prospects of the economy.
Holdings in SPDR Gold Trust fund, fell 0.44 percent to 868.66 tonnes on Tuesday, the first decline in a month.
Gold for delivery in June dropped Rs 140 or 0.48 per cent to Rs 29,160 per 10 gram at the Multi Commodity Exchange as speculators trimmed their positions.
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