Gold prices are set to end a three-day winning streak today, Thursday, pressured by a rising dollar and the likelihood that the Federal Reserve (the U.S. central bank) will implement further interest rate hikes, overshadowing expectations for the yellow metal's prices.
By 10:30 GMT, spot gold fell 0.3% to $1,831.10 an ounce, after reaching a one-week high on Wednesday. Meanwhile, U.S. gold futures declined 0.4% to $1,837.20.
Although gold is considered a hedge against inflation, interest rate hikes aimed at curbing prices increase the opportunity cost of holding the non-yielding precious metal.
U.S. central bank officials were divided yesterday on whether high inflation data and a robust job market warrant caution in raising interest rates or simply require maintaining the current tightening for a longer duration.
Investors are also awaiting the release of the weekly U.S. jobless claims report today.
Additionally, rising U.S. 10-year Treasury yields reached their highest level since early November 2022, and the dollar index increased by 0.3%, further putting pressure on gold prices.
Among other precious metals, silver dropped 1.1% to $20.76 an ounce, while platinum rose 0.2% to $957.07. Palladium fell 0.5%, recording $1,432.48.
