Gold loses sheen as firm dollar, yields compound rate-hike woes

Gold prices fell 1% on Thursday, as Treasury yields and the dollar rose, with bullion's outlook already dented by fears the U.S. Federal Reserve could opt for a more aggressive interest rate hike this month to tackle sky-rocketing inflation, reports Reuters.
Spot gold retreated 1% to $1,718.69 per ounce by 0757 GMT. U.S. gold futures also lost 1% to $1,717.70.
The dollar set a fresh 20-year high, hurting demand for greenback-priced gold among buyers holding other currencies.
Benchmark U.S. 10-year Treasury yields rose, weighing on appetite for zero-yield gold.
Data released overnight showed U.S. annual consumer prices jumped 9.1% in June, the sharpest spike in more than four decades.
"The CPI release generated volatility but not direction," said Ilya Spivak, a currency strategist at DailyFX, reasoning that markets now likely expected the Fed to front-load rates more, and not necessarily tighten more overall, but said gold still had a bearish outlook.
A rallying dollar sent gold prices to a near one-year low on Wednesday following the inflation report, but a retreat in the greenback helped bullion make a sharp recovery and end the session higher.
Global markets swung wildly in the previous session. On Thursday, Asian shares struggled on fears the Fed's aggressive monetary policy could trigger a recession.