The recent bounce in the U.S. dollar has cooled the stock rally and weighed on precious metal ETFs indexed to gold and silver.
The rise in the dollar this week has been attributed to Tuesday’s release of the Federal Reserve minutes which “suggested that the bank wasn’t ready to take more action to push interest rates lower,” the Associated Press reported.
Gold prices were down 3% to trade around $1,620 an ounce on Wednesday afternoon.
PowerShares DB US Dollar Index Bullish
Charts source: StockCharts.com