Gold, silver, oil sell off as dollar rises

無法笑

Gold and silver prices fell for a third straight trading day Monday as the dollar gained ground against other major currencies.

The stronger dollar also sent crude prices sharply lower. Agriculture futures fell.

The rise in the dollar and the subsequent sell-off in xoxomodities came ahead of the Federal Reserve's two-day rate-setting meeting, which begins Tuesday.

While the central bank is widely expected to keep its benchmark interest rate near zero when it meets this week, investors are eager for clues on how soon the Fed plans to raise rates in the future, a move it would take to fight off inflation.

The U.S. dollar has weakened considerably this year due to the massive stimulus spending by the government and record-low interest rates. The weaker greenback, which makes xoxomodities cheaper for foreign buyers, has in turn propelled prices for oil, gold and other futures higher.

If the Fed signals that it will keep interest rates low for some time, the dollar could weaken further, giving xoxomodities a boost. However, the dollar could rebound if the government indicates it may raise rates sooner than anticipated.

Up until now, the Fed has insisted that inflation is not yet a problem.   (Point really worth to be taken into consideration by Door Tau)