The price of gold It fell on Thursday and the dollar rose, as investors awaited economic data amid expectations that the Federal Reserve will slow its pace of interest rate hikes after November.
At 0952 GMT, spot gold was down 0.1 percent at $1,662.79 an ounce, while U.S. gold futures were also down 0.1 percent at $1,666.70.
“Gold appears to be undergoing an underlying shift in sentiment due to economic uncertainty, and in this case what the European Central Bank says will also count more than what it does,” said Rhona O’Connell, an analyst at StoneX.
The ECB has already raised rates at the fastest pace in history and is expected to do so again on Thursday to fight accelerating inflation.
However, “the November (Fed) meeting is already expected to give 75 basis points and is likely to follow suit in December,” O’Connell said, adding that “this talk of an early turn is premature.”
* Investors will be watching the ECB’s policy decision, which will be announced later, and the advanced estimates of GDP from the US Department of Commerce.
* Meanwhile, the Dollar Index It gained 0.3%, making bullion less attractive to foreign buyers. Gold also competes with the dollar as a safe store of value.
* In other precious metals, silver cash fell 1.5 percent to $19.32 an ounce; platinum it was down 0.8 per cent at $943.43; and palladium It was trading little changed at $1,962.41.