Gold prices saw a slight drop on Thursday, April 12 for the first time in several days. Investors backed off the precious metal slightly amid a pair of potential moves from the United States.
One factor in play Thursday came from President Donald Trump. President Trump indicated earlier this week that a United States attack on Syria was imminent. This anticipated attack drew investors to gold, seeing the risk of foreign conflict.
However, President Trump backed off his claims on Thursday. Now he says the attack on Syria may never happen. It is merely an option, not an inevitability.
Gold Prices Drop
This policy is leading to a rise in the dollar and, as a result, a drop in gold. Silver and platinum saw declines on Thursday as well. With all three dropping, it was a stressful day for precious metals.
Also affecting gold value was the anticipation of rate hikes from the United States government. The odds of rate hikes continue to rise, making the dollar gain value. As the dollar continues to up, gold will continue to go down.
Current chance of a rate hike in June sits at over 87 percent. A fourth rate hike, which would occur in December, is looking at a 34 percent chance. Both of these values are the highest seen all year.
The one-day drop shouldn’t scare people away from gold entirely, though. The valuable asset is in the midst of a long upswing. Earlier in the week, gold hit its highest mark in two years.
Some strategists say gold is re-taking its place atop “safe-haven” investments.
Some thought that cryptocurrency, especially Bitcoin, would become the favorite play among defensive investors. However, Bitcoin has dropped over 60 percent since hitting all-time highs in December 2017.
As of 6:35 Thursday, April 12 gold sat at 1337.1, a drop of 1.19 percent. Silver, also dropping, stood at 16.48, down 1.12 percent. Platinum came in down .43 percent at 925.