Gold slid to a four - month low on Tuesday as the dollar strengthened ahead of a US Federal Reserve policy meeting that is being watched for clues on the
future pace of interest rate hikes.
The Fed is likely to accelerate
the pace of interest rate hikes if inflation starts to become «a problem,» says King Lip of Baker Avenue Asset Management.
Minutes from U.S. Federal Reserve showed late Wednesday that policymakers are divided on
the pace of interest rate hikes and several members showed concern on the impact on markets.
Concerns that a possible rise in inflation in the United States could lead the Fed to increase
the pace of interest rate hikes has caused nerves on Wall Street, and American investment products that bet against volatility seem to have contributed to Monday's stock rout.