Gold Edges Lower On Fed's Hawkish Outlook

Gold prices edged lower on Thursday, though the downside remained capped by a weakening dollar on receding recession worries.

Spot gold slipped 0.2 percent to $1,788.03 per ounce, while U.S. gold futures were down 0.6 percent at $1,803.40.

The lost further ground versus other major currencies amid hopes that inflation in the United States may have peaked, which could allow the Fed to slow the pace of interest rate increases.

U.S. Treasury yields were mixed in the wake of hawkish Fed comments.

Minneapolis Fed President Neel Kashkari on Wednesday said the Fed is "far, far away from declaring victory" on inflation and that the U.S. central bank will need to raise its policy rate another 1.5 percentage points this year and more in 2023, even if that causes a recession.

Chicago counterpart Charles Evans said the July CPI data was positive but inflation remains "unacceptably high".

In economic releases, U.S. reports on weekly jobless claims and producer price inflation due out later in the day may offer additional clues about the strength of the world's largest economy.

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