Gold prices fell Wednesday, weighed down by a stronger dollar.
Gold for December delivery closed down 0.4% at $1,328 a troy ounce on the Comex division of the New York Mercantile Exchange.
The Wall Street Journal Dollar Index, which measures the U.S. currency against a basket of 16 others, was recently up 0.5% at 85.53. Gold is priced in the U.S. currency and becomes more expensive to foreign buyers when the dollar rises.
Investors have been eager to lock in gains on gold’s recent rally, which has seen the metal gain around 10% from its June lows as investors grew doubtful the Federal Reserve will raise rates a third time this year. Expectations that rates will stay low tend to buoy gold, which struggles to compete with yield-bearing investments when borrowing costs rise.
Some analysts believe markets are underestimating the chances of a more hawkish Fed. The central bank is likely to raise rates four more times in the next 12 months, pressuring gold prices, analysts at Société Générale said in a note to clients.
In base metals, the stronger dollar pushed down December copper 1.8% to $2.9810 a pound.
Write to Ira Iosebashvili at firstname.lastname@example.org