Price Of Gold Pulls Back Sharply Amid Dollar Strength

(RTTNews) - After ending the previous session moderately higher, the price of gold showed a substantial move back to the downside during trading on Wednesday.

Gold for April delivery tumbled $24.60 to $1,224 an ounce after ending Tuesday's trading up $4.40 at $1,248.60 an ounce.

The pullback by the price of gold was partly due to strength in the value of the U.S. dollar, which makes the precious metal more expensive for foreign investors.

The dollar is trading at 112.56 yen compared to the 112.37 yen it fetched at the close of New York trading on Tuesday. Against the euro, the greenback is valued at $1.1180 compared to yesterday's $1.1217.

The increase in the value of the dollar was attributed to comments by Philadelphia Federal Reserve President Patrick Harker, who said the Fed should consider another interest rate hike as early as next month.