Gold slides 1% as dollar marches ahead
Gold prices retreated 1% on Thursday as the dollar bounced, while recent comments from U.S. Federal Reserve officials signalled continuing policy tightening to tame inflation.
Spot gold fell 0.8% to $1,760.43 per ounce by 1:50 p.m. ET (1850 GMT), after falling to $1,753.6 earlier in the session. U.S. gold futures settled down 0.7% to $1,763.
With Fed officials expressing the need for a further slowdown in U.S. inflation, the "market interpreted that as higher rates, which made gold sell off here in the overnight session," said Bob Haberkorn, senior market strategist at RJO Futures.
"The dollar strengthened on those comments that the Fed is still going to continue to raise rates... gold bears the brunt of higher interest rates."
The dollar index rose 0.3%, making gold more expensive for other currency holders, and benchmark 10-year yields were higher on the day as well.
