Gold prices were set to break their three-season winning run on Thursday, which was weighed down by a stronger dollar and prospects of further interest rate hikes from the US Federal Reserve as the outlook for bullion remained cloudy. .
Spot gold was down 0.2% at $1,832.60 an ounce by 0845 GMT, after hitting a one-week peak in the previous session. US gold futures fell 0.4% to $1,838.30.
“Future rate hikes remain near-term challenges for gold and other precious metals,” said UBS analyst Giovanni Stanovo. “Market participants’ attention remains on US economic data and how it affects the Fed’s monetary policy.”
The Institute for Supply Management survey showed on Wednesday that inflation may remain elevated for some time as raw material prices rose last month, with a jump in prices at the factory gate.
While gold is considered a hedge against inflation, recent central bank rate hikes to ease price pressures have weighed on appetite for the metal as it does not yield any interest.
US central bank officials were divided on Wednesday on whether recent high inflation data and a persistently hot jobs market would warrant more restrictive interest rates, or call for patience to maintain tight monetary policy for a longer period. will be required.
Investors will be keeping an eye on US weekly initial jobless claims data due at 1330 GMT.
Further weighing on bullion, the benchmark US 10-year Treasury yield rose to its highest level since early November 2022, while the US dollar gained 0.3%.
Elsewhere, spot silver fell 0.8 per cent to $20.82 an ounce. Platinum fell 0.1% to $954.13 and palladium shed 0.6% to $1,431.13.
“We continue to favor platinum over palladium, with platinum benefiting from power outages in South Africa, the largest producer of platinum, while palladium suffers from weaker growth in North America and Europe,” Stanovo said.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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