Gold falls in price amid potential Fed rate hike

Gold prices on April 8 morning fell under the pressure of a possible further increase in the base interest rate by the US Federal Reserve (Fed), Report informs referring to the auction data.

The cost of June futures for gold on the New York Comex exchange fell by $8.6, or 0.44%, to $1,929.2 per troy ounce. May silver futures fell 0.12% to $24.705 an ounce.

On April 8 morning, markets are evaluating the comments of President of the Federal Reserve Bank of St. Louis James Brian Bullard that the Fed is not yet fully controlling inflation and is likely to raise the discount rate quite sharply. The increase in the base interest rate is positive for the dollar and negative for the precious metal.

However, the precious metal is still holding above $1,900 a troy ounce as a safe-haven asset amid international tensions over Ukraine.