Commodity Market Update : Gold Edges Little Higher After Biggest One-Day Drop in 2017

Gold edged up at the start of the Friday’s session (and other precious metals gained as well), but the rise followed Thursday’s drop that was the biggest one-day drop this year. The slump coincided with the rally of the US dollar. Metals and the US currency often move in reverse correlation to one another.

The reason for the gold’s big slump was anticipation for an interest rate from the Federal Reserve soon. CME Fed Watch shows about 75% probability of a hike as soon as this month, up from 34% just a week ago.The speech that US President Donald Trump delivered to the Congress earlier this week was well-received by markets, putting them into a risk-on mode. That also affected gold negatively. 

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