Gold futures rose on Tuesday, extending their gains to a third-consecutive session. “The only trade finding any real conviction right now seems to be betting on faster rate hikes sooner from the [Federal Reserve],” said Adrian Ash, director of research at BullionVault. He said he expects higher interest rates to act “like kryptonite to gold, sapping its strength. However, “the Fed is clearly so far behind the curve on inflation that the solid bid for gold says it’s either too late to ever catch up, or it’s about to make a historic mistake, hiking just as the economy cools down,” said Ash. April gold rose $6.10, or 0.3%, to settle at $1,827.90 an ounce. Based on the most-active contract, prices marked their highest settlement since Jan. 26, FactSet data show.
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