(Bloomberg) -- Gold and silver fell in New York on
speculation that higher global interest rates will reduce demand
for precious metals as alternative investments.
The European Central Bank raised its benchmark rate to
4 percent, the highest in six years, to temper inflation. Labor
costs in the U.S. in the first quarter rose more than forecast,
a signal that the Federal Reserve might have to raise rates to
curb accelerating prices. Holding gold becomes less attractive
when rates rise because the metal has no fixed returns.
Read more at Bloomberg Commodities News
speculation that higher global interest rates will reduce demand
for precious metals as alternative investments.
The European Central Bank raised its benchmark rate to
4 percent, the highest in six years, to temper inflation. Labor
costs in the U.S. in the first quarter rose more than forecast,
a signal that the Federal Reserve might have to raise rates to
curb accelerating prices. Holding gold becomes less attractive
when rates rise because the metal has no fixed returns.
Read more at Bloomberg Commodities News
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