Gold drops as Fed indicate a potential rate hike
The gold price retreated over $10 per ounce yesterday but managed to stay above the psychological $1,200 barrier.
The gold price dropped after the U.S. Fed indicated they are likely to increase interest rates in the second half of 2015.
The gold price has been boosted in recent weeks following weak economic data out of the U.S. Yesterday data confirmed U.S. GDP grow an annual rate of 0.2%.
The U.S dollar fell following the announcements and now trades at a two month low against a basket of major currencies. A lower dollar makes bullion cheap in other currencies.
The Fed’s ...