NEW YORK: Gold prices extended losses to a third straight session on Wednesday as the dollar and US Treasury yields firmed, while investors zoned in on the upcoming minutes from the US Federal Reserve’s July meeting.
Spot gold fell 0.5% to $1,767.59 per ounce by 10:13 a.m. ET (1413 GMT). US gold futures eased 0.4% to $1,782.00.
“Gold is slightly down due to stronger dollar and yields... The high UK inflation number has raised concerns that central banks around the world will be more aggressive,” said David Meger, director of metals trading at High Ridge Futures.
UK inflation jumped in July to the highest since February 1982, surpassing economists’ forecasts in a Reuters poll and fuelling investor bets that the BoE would keep on hiking interest rates quickly.
The dollar index rose 0.2%, making bullion more expensive for overseas buyers, while US Treasury yields were also up for the day.
“The Jackson Hole symposium presents an additional avenue for the Fed to push back against the dovish narrative... The pain trade in gold remains to the downside,” TD Securities said in a note.
Recent hawkish remarks from Fed officials have weighed on non-interest bearing bullion, pushing it below the key $1,800 level to its lowest since Aug. 5.
Minutes from the July Federal Open Market Committee (FOMC) meeting are due at 14:00 ET.
Spot silver fell 1.4% to $19.84 per ounce, platinum slipped 0.6% to $929.50, and palladium dropped 0.3% to $2,146.66.
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