Gold prices slip to 2-month low

Gold prices fell over 1 per cent on Thursday, hitting a two-month low, pressured by a strong US dollar, while investors awaited US economic data later in the day for further clues on the Federal Reserve's monetary path, reports Reuters.

Spot gold was down 1.1 per cent at $2,546.70 per ounce as of 1119 GMT, declining for a fifth straight session, after hitting its lowest since Sept. 12 earlier in the session. US gold futures were down 1.4 per cent at $2,551.60.

"Gold bulls have wilted in the face of the rampant dollar since Trump's election win," said Exinity Group Chief Market Analyst Han Tan.

The US dollar rose to a one-year high, making gold more expensive for overseas buyers. Treasury yields also rose, adding additional pressure.

Markets are dismissing gold as a hedge against inflation, despite Trump's policies potentially raising US inflation, Tan said.

Economists believe Trump's tariff plans would stoke inflation, potentially slowing the Fed's rate easing cycle.

Data on Wednesday showed slower progress toward low inflation since mid-year, which could result in fewer interest rate cuts from the Federal Reserve next year.

Meanwhile, spot silver fell 1.8 per cent to $29.81 per ounce, its lowest level since Sept. 12. Platinum fell 0.5 per cent to $932.95 while Palladium lost 0.9 per cent to $925.25.