Gold Plunges Downward to Three-Month Low. Will It Fall Further?
Gold was hit sideways and then fell to a more than three-month low Tuesday as oil prices declined by more than $3, the U.S. dollar gained strength and continued expectations for the Federal Reserve to cut interest rates Wednesday for the last time caused pause for the yellow metal.
Gold dropped $18.70 or 2.1 percent to $876.80 an ounce on the New York Mercantile Exchange. That was the lowest closing price for floor trading since January 7. For a time the price had dropped to a low of $873.60 — a level not seen since January 22.
Tomorrow’s Fed meeting is likely an indicator of gold’s near-term future. Should the Fed cut interest rates for the last time and signal their intent to hold rates or raise the potential for their reversal later in the year, gold could take its cue and move further downward.
