Gold opened the week fairly soft on Monday, but gained momentum Tuesday after the terrorist attacks on Brussels shook the world—the second attack on a European capital in four months. The attack killed over 30 people and injured more. The gold price rose above $1,250 early in the day as traders flocked to the safe haven of the yellow metal.
However, these gains for gold didn’t last and the price fell before the end of the day. Unfortunately, terror attacks have become fairly commonplace and don’t spark the level of panic as they used to. The dollar was higher Tuesday, pushing gold back down. The Federal Reserve also released a statement saying they could raise interest rates as soon as April, which also contributed to the lower gold price.
Spot gold fell to its lowest point in two weeks on Wednesday, dropping around two percent. Fed officials indicating a rate hike sooner rather than later continued to put pressure on gold. Traders were also taking pre-holiday Easter gains before the long weekend, keeping the price of gold from rising. Thursday closed at a four-week low. Friday’s markets were closed due to the Easter holiday.