Gold Drops as Interest-Rate Outlook Trumps Ukraine Havoc
This article is for subscribers only.
Gold futures fell for the first time in three days as speculation that the Federal Reserve will raise U.S. interest rates sooner than expected outweighed concerns that tensions between Ukraine and Russia will escalate.
The Fed may have to raise its benchmark rate more quickly than planned as unemployment drops and inflation accelerates, James Bullard, president of the St. Louis Fed, said yesterday. Yesterday, gold jumped the most in four weeks after a Malaysia Airlines plane crashed in Ukraine and Israel sent ground forces into the Gaza Strip. Russia and Ukraine blamed each other for the downing of the passenger jet that killed 298 people.