London: Gold and silver prices today dropped to the lowest level in almost two weeks as the US dollar strengthened amid speculations that the Federal Reserve will raise interest rates this year.
Gold fell by 0.9 percent to USD 1,195.72 an ounce after reaching USD 1,194.91 an ounce, the lowest since May 13. Silver also slipped by 2.1 percent to USD 16.81 an ounce. It touched USD 16.79 an ounce, the lowest since May 13.
The Bloomberg Dollar Spot Index climbed to a one month high after a data on Friday showed US inflation rose more than the forecast in April and Fed Chair Janet Yellen said it would be "appropriate" to raise borrowing costs this year if the economy improves.
Markets in the UK and the US reopened on Tuesday after being closed for holiday on Monday.
Meanwhile, the Fed has kept interest rates near zero since 2008 and last raised them in 2006. Policy makers are due to end their next meeting on June 17. (Bloomberg)
