Gold prices drop as odds of a March interest-rate hike jump

MarketWatch/Myra P. Saefong & Barbara Kollmeyer/03-01-17
Gold prices took a hit on Wednesday as investors absorbed fresh comments from U.S. Federal Reserve officials, who dropped hints that an interest-rate increase as early as March was up for consideration.

…Late Tuesday, San Francisco Fed President John Williams said an interest-rate rise “is on the table for serious consideration” at the Fed’s policy meeting in mid-March.

Ahead of Williams’s speech, New York Fed President William Dudley said the case for a interest-rate hike had become “a lot more compelling.” Speaking to told CNN International Tuesday, Dudley added that “animal spirits have been unleashed a bit” in the U.S. stock market, which has been rallying since the election of President Donald Trump.

PG View: But early losses have already been retraced and gold is now trading slightly higher on the day; and more than $10 off the intraday low.

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