Gold futures retreated for a second day Tuesday, as the dollar ticked higher amid expectations that the Federal Reserve will raise benchmark interest rates sometime this year.
The gold market is also experiencing a “short-term correlation with stocks as nervous funds again throw the baby out with the bath water,” said Mark O’Byrne, executive director at GoldCore. U.S. stocks moved sharply lower Tuesday.
Gold was due a bit of a correction after last week’s gain of more than 3%, and “some funds may be using the stock market sell off to take profits,” he said.
