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Gold drops on firm dollar as March rate hike bets rise
Gold prices slipped on Thursday as the dollar firmed on hawkish comments from U.S. Federal Reserve officials that stoked expectations of a U.S. interest rate hike in March.Spot gold fell 0.2 percent to $1,246.14 per ounce by 0255GMT. On Monday, the metal rose to $1,263.80, its highest since Nov. 11.
U.S. gold futures fell 0.3 percent to $1,246.60. The dollar index, a measure of the greenback against a basket of six other major currencies, was up 0.1 percent at 101.910. On Wednesday, it reached 101.97, the highest since Jan. 11.
Higher U.S. interest rates would diminish demand for non-interest bearing gold while a higher dollar makes the yellow metal more expensive for buyers using other currencies.
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