Gold plummeted to a three week low on Wednesday with investors selling following Tuesday’s less than expected U.S. interest rate cuts and the dollar’s gaining strength.
The Federal Reserve cut interest rates Tuesday by three-quarters of a percentage point, instead of the full percentage point many were expecting.
The dollar generally declines with interest rates cuts, but the less than expected reduction served to pull the greenback up. Gold and the dollar typically move in the opposite direction, and that trend continued.
At 1:55 ET, New York spot gold is down $37.20 to $944.10 an ounce.
Other precious metals have followed suit. Silver dropped $1.22, or 6.2% to $18.45. Platinum dropped $49, or 2.5% to $1,902.