Gold declined for the ninth consecutive day, which makes it the commodity with the highest number of losses for this year. Gold’s losses are attributable to a stronger dollar and one-month highs in European shares. Gold fell by 1% to US$1,200 an ounce, the lowest level since February. Silver fell 1.6%, while platinum dropped 0.6%.
Meanwhile, the dollar has been boosted after Federal Reserve chair, Janet Yellen, announced an increase in interest rates in the coming months. The most important central bank in the world, the US Fed, began to prepare financial markets for higher interest rates in dollars, so investors would not be taken by surprise. Janet Yellen signalled that the US central bank will increase base rates soon provided that the US economy continues to grow at the pace of the first quarter. It is expected that the growth in GDP, a broad measure of the goods and services produced across the economy, would accelerate to a 2.5% annual rate in the second quarter from the first quarter’s 0.8% pace.