Gold Falls as Dollar Advances, Bets Mount on Fed Rate Increase
- Federal Reserve policy makers meet on Tuesday and Wednesday
- Gold gains have sputtered in July on Fed rate concern, dollar
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Gold declined a third time in four sessions amid rising speculation that the Federal Reserve will raise U.S. interest rates this year.
Fed policy makers meet Tuesday and Wednesday. Signs of strength in the U.S. economy have prompted traders to increase odds of a rate increase by year-end to 49 percent, from 41 percent a week ago and about 12 percent at the beginning of the month. Higher rates are typically negative for gold because the metal doesn’t pay interest.