Gold Subdued With Central Bank Meetings Firmly In Focus

Gold prices held near 29-month lows on Thursday after the U.S. Federal Reserve and Swiss National Bank both hiked their key policy rates by 75 basis points, hurting demand for the non-yielding precious metal.

Spot gold dipped 0.4 percent to $1,666.99 per ounce while U.S. gold futures were marginally lower at $1,674.85.

The downside remained capped somewhat as the dollar eased after the Bank of Japan said it had intervened in the forex exchange market to buy yen for the first time since 1998.

After having delivered its third consecutive jumbo rate hike, the U.S. central bank now sees its benchmark interest rate reaching 4.4 percent by end-2022 and rising even further in 2023 despite growing headwinds to economic growth and the labor market.

The Bank of England meets later in the day, with economists expecting a 75-bps rate hike.

Earlier today, the SNB hiked borrowing costs by 75 basis points to 0.5 percent, up from the previous level of -0.25 percent set in June.

Norway's central bank also raised its main interest rate to its highest level since 2011, adding to worries of a global economic slowdown.

The U.S. economic calendar remains light today, with reports on weekly jobless claims and leading economic indicators due.

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