NEW YORK: Gold prices slipped on Thursday as a firmer dollar took the sheen of the greenback-priced metal, with mounting concerns over the US Federal Reserve’s aggressive monetary policy and impending rate hikes denting sentiment further.
Spot gold fell 0.7% to $1,648.39 per ounce by 10:40 a.m. EDT (1440 GMT), having marked its best day since March on Wednesday. US gold futures fell 0.8% to $1,657.10.
“Gold’s weaker as the dollar rally resumes ... we’ve gotten another round of economic data and it still supports the argument that the Fed could remain very aggressive with the tightening of policy,” said Edward Moya, senior analyst with OANDA.
Gold prices had extended losses after data showed gross domestic product in the US fell at an unrevised 0.6% annualized rate in the second quarter, compared with a 1.6% contraction in the first quarter.
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