Daily Gold Update

Source: Marketwatch

New York— Gold futures fell 1.6% on Tuesday, as U.S. dollar strength and a sharp fall in oil futures prompted traders to sell the precious metal. Gold for August delivery dropped $15.20 to end at $948.50 an ounce on the New York Mercantile Exchange. The metal earlier hit an intraday low of $944.50 an ounce.

The dollar got a lift Tuesday from a Federal Reserve official's implication that U.S. interest rates should go higher, and extended gains as crude-oil futures sank and Wall Street recovered from early lows. The dollar index, a measure of the greenback against a trade-weighted basket of currencies, rose 0.9% to 72.49. Philadelphia Federal Reserve Bank President Charles Plosser said Tuesday that very accommodative monetary policy needs to be reversed and the rate hikes will need to begin soon. See full story.