Gold Punished by Dollar’s Rally as Silver Nears Bear Market
- Gold drops to five-month low as dollar gains on Fed rate bets
- Holdings in gold ETFs set for biggest weekly drop since 2013
Saxo Bank's Hansen: Dollar Is Biggest Risk to Gold
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Gold slid to a five-month low and silver neared a bear market as the dollar rallied amid mounting expectation for higher U.S. interest rates.
In her first public statement since the U.S. election, Federal Reserve Chair Janet Yellen said Thursday that the central bank is close to raising rates as the economy continues to strengthen. With a rate hike next month seen as a near-certainty, the dollar and bond yields are rising and investors are selling assets that don’t pay interest.