Gold prices fell on Thursday to their
lowest in nearly a year, as an elevated U.S. dollar and
prospects of more interest rate hikes by major central banks to
combat soaring inflation weighed on bullion’s appeal.
* Spot gold was down 0.2% at $1,693.90 per ounce by
0052 GMT, after falling to its lowest since early August 2021 at
$1,691.40 in early Asian trade.
* U.S. gold futures fell 0.5% to $1,692.10 per ounce.
* The dollar held below two-decade highs against its
rivals, making greenback-priced bullion more expensive for
buyers holding other currencies.
* The European Central Bank will raise interest rates for
the first time in 11 years on Thursday with a
bigger-than-flagged move seen as increasingly likely as
policymakers fear losing control of runaway consumer price
* The U.S. Federal Reserve is widely expected to raise
interest rates by 75 basis points at its policy meeting next
* British inflation in June surged to a 40-year peak,
bolstering chances of a half-percentage-point Bank of England
rate hike next month.
* Although gold is seen as a hedge against inflation, rising
interest rates increase the opportunity cost of holding bullion,
which pays no interest.
* SPDR Gold Trust , the world’s largest gold-backed
exchange-traded fund, said its holdings fell 0.3% to 1,005.87
tonnes on Wednesday from 1,009.06 tonnes on Tuesday.
* European Union diplomats meeting in Brussels on Wednesday
agreed a new round of sanctions against Moscow for invading
Ukraine, including a ban on importing gold from Russia.
* Spot silver was flat at $18.66 per ounce, platinum
eased 0.2% to $856.12, and palladium rose 0.2% to
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(Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu