Gold Prices Dip Amid A Resurgent Dollar

Gold prices inched lower on Thursday as traders kept a closer eye on activity in the bond and currency markets.

Spot gold fell 0.6 percent to $1,649.39 per ounce, while U.S. gold futures were down 0.8 percent at $1,656.95.

The dollar tightened its hold on the currency markets after the Fed's Atlanta president Raphael Bostic said he favored raising rates by three-quarters of a percentage point at the November policy meeting and by half a percentage point at the December gathering.

Yields on British government bonds rose moderately while Eurozone yields fell from multi-year highs as British Prime Minister Liz Truss doubled down on her tax cutting and borrowing plans.

In economic releases, a measure of economic sentiment in the euro area deteriorated again in September, the European Commission said.

The corresponding index - an aggregate measure of business and consumer confidence—dropped to 93.7 from 97.3 in August, the lowest reading since November 2020, weighed by high inflation and a darkening economic outlook.

German data due later in the day is expected to show consumer prices rising at the fastest rate since the 1950s.

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