Gold prices hit 4-week-low as dollar strengthens

Gold prices hit a four-week-low Wednesday, dragged down by a stronger dollar despite safe-haven buying that followed the terror attacks in Brussels on Tuesday.

Bullion dropped more than 2% in morning London trading and it was last down 2.4% to $1,218.60 an ounce on the New York Mercantile Exchange.

Gold had rallied in recent weeks, but increasing speculation that the Federal Reserve is moving closer to raising interest rates continues to put pressure on the precious metal.

This morning, Philadelphia Fed President Patrick Harker said the central bank should consider another hike as early as next month if the U.S. economy continues to improve, while Chicago Fed President Charles Evans also said he expects two more rate increases this year.

Higher rates would boost the dollar and make gold more expensive for investors who hold other currencies, pushing the price down.