Gold drifted lower Tuesday, weighed down by a stronger dollar and expectations of a more hawkish Federal Reserve.
Gold for February delivery was recently down 0.1% at $1,175 a troy ounce on the Comex division of the New York Mercantile Exchange. Prices are down around 12% from their November highs.
The Wall Street Journal Dollar Index was recently up 0.1% to 91.03. A stronger dollar tends to weigh on gold, which is priced in the U.S. currency and becomes more expensive to foreign buyers when the dollar rises.
Analysts at Commerzbank. cited by Dow Jones, noted downward pressure from continuing outflows from exchange-traded funds that buy gold. Investors have withdrawn money from ETFs for 17 consecutive sessions, accounting for nearly 150 tons of the metal — double the inflows of the third quarter of the year.
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