Gold continues to fall in price ahead of tightening of US Fed policy

Gold prices on March 16 morning continued to decline, as investors expect a tightening of monetary policy by the US Federal Reserve System (FRS), Report informs referring to the auction data.

The price of April gold futures on the New York Comex exchange fell by $11.6, or 0.61%, to $1,917.95 per troy ounce. May futures for silver fell 0.63% to $24.995 an ounce.

The negative trend continues on the gold market on March 16 morning, as investors assume that following the Fed's meeting, it will raise the discount rate, and the tightening of monetary policy is positive for the dollar and negative for the price of the precious metal.

However, in the current situation, gold remains relevant as a safe-haven asset.

The conflict between Russia and Ukraine does not seem to lead to an immediate de-escalation, which should support the price of gold, Oanda analysts told the Wall Street Journal.