Gold struggled to recover from a two-week low on Thursday as a robust dollar and the prospects of higher US interest rates dented demand for the metal. Spot gold was little changed at $1,188.55 an ounce by 0647 GMT. The metal hit a two-week low of $1,183.76 in the previous session, but pared losses to end flat for the day. Silver on Wednesday also hit a low of $16.55 an ounce, its lowest since May 13.
"Gold and silver flounder against a backdrop of no major data releases to give price guidance and sluggish physical demand," HSBC analyst James Steel said. Gold fell 1.7 percent on Tuesday, its sharpest one-day drop since April, as investors believed the robust data would prompt the Federal Reserve to soon raise interest rates. Investors believe higher rates would dent gold's appeal as it is a non-interest-paying asset. Robust data and a higher greenback diminish demand for gold as a safe haven.
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