Gold falling in price amid prospects of raising Fed discount rate

Gold prices fell on April 1 morning, investors are weighing the prospects of raising the base interest rate by the US Federal Reserve, Report informs referring to the auction data.

The price of April gold futures on the New York Comex exchange fell by $12.2, or 0.63%, to $1,937 per troy ounce. May futures for silver fell 0.56% to $24.992 an ounce.

The price of the precious metal on April 1 morning is under pressure from the expectations of the Fed's rate hike. With an increase in the base rate, the exchange rate of the national currency rises, and gold becomes cheaper. Markets' fears of stagflation are probably misplaced - meaning prices will eventually come under pressure as the Fed raises interest rates.

In addition, the decline in prices for gold is facilitated by the already strengthening dollar, whose index (the exchange rate against a basket of currencies of six countries - the main US trading partners) increases by 0.14%, to 98.45 points.