WASHINGTON (dpa-AFX) - Gold futures settled lower on Wednesday, losing ground for a second straight session, as the dollar continued to stay firm on recent hawkish comments from some Fed officials.
Signs of progress in Israel - Hamas ceasefire talks weighed as well on the yellow metal.
The dollar index climbed to 105.64 in the Asian session, before easing slightly. The index was at 105.56 a little while ago, gaining about 0.14%.
Gold futures for May ended down by $1.60 at $2,313.60 an ounce.
Silver futures for May settled at $27.361 an ounce, gaining $0.058 or about 0.21%. Copper futures dropped to around $4.5465, down 1.3% from the previous close.
Minneapolis Federal Reserve President Neel Kashkari said Tuesday that rates will likely stay high for an 'extending period' and that he will support a hike if inflation stalls near 3%.
Analysts had forecast earlier that the Fed will start lowering interest rates from July. However, after last week's economic data, the central bank is now expected to delay interest rate cuts, and the first cut is unlikely to happen before September.
Based on CME's FedWatch Tool, markets are presently pricing in a 65 percent possibility of a U.S. rate cut in September.
On the geopolitical front, Israeli troops seized control of Gaza's vital Rafah border crossing on Tuesday as captive-exchange talks continue.
The U.S. has played down the deadly Israeli assault on Rafah and expressed hope that a ceasefire deal with Hamas was within reach.
The Karam Abu Salem crossing, also known as Kerem Shalom, was reopened this morning after a government order, the Israeli authority in charge of the crossing said on X after the U.S. piled pressure on Benjamin Netanyahu to agree a ceasefire deal with Hamas.
Urgent ceasefire talks are being held in Cairo, but Hamas have warned there will be no negotiations if Israel's operation in Rafah continues.
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX