Gold keeps to 4-week lows
On Tuesday, during European trade gold futures struggled close to four-week minimums, thus contributing to overnight losses amid hawkish comments from the Fed.
The latest signal was obtained from Patrick Harker, Philadelphia Federal Reserve Bank President, who informed on Monday that two to three rate hikes are quite possible this year, especially if the US economy keeps surging as projected.
His comments arose when John Williams, San Francisco Fed President told in New York that from this point of view it could be good to push up interest rates at least two times in 2016, followed by another 3-4 times in 2017.
Apart from that on Monday, James Bullard, St. Louis Federal Reserve President told that a relatively tight labor market in America might apply upward pressure on inflation, thus stepping up the case for higher interest rates.
As for gold, its June delivery futures dropped $6.75 in New York, trading at $1,244.75 per troy ounce.
In general, gold futures have lost almost 4% in May.