Gold prices drop as US dollar gains ground

Gold prices tumbled today, March 19, as the US dollar soared ahead of the Federal Reserve’s policy meeting, which begins today and continues until Wednesday, during which interest rates are expected to be held steady.

Bullion for April delivery slumped by 0.40% to $2,155.70 per ounce at 12:58 pm Makkah time, with spot prices also down 0.32% to $2,153.35 an ounce.

Likewise, silver futures for May delivery shed 0.63% to $25.11 per ounce, in tandem with a 1.55% drop in platinum spot prices to $903.71 an ounce.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, soared 0.59% to 104 points.

Although analysts widely expect the Fed to keep interest rates unchanged within the 5.25%-5.50% range at the rate-setting committee’s meeting that ends tomorrow, investors' focus is on garnering more clues about the future path of monetary policy.