Gold slid to a near three-month low on Thursday as the dollar strengthened after the U.S. Federal Reserve signalled it could implement more interest rate hikes this year, reports Reuters.
Spot gold was 0.6 per cent lower at $1,931.29 per ounce by 1239 GMT, having hit its lowest since March 17. US gold futures fell 1.4 per cent to $1,941.10.
In the meeting held over June 13-14, nine of 18 Fed officials see the benchmark overnight interest rate moving up another half of a percentage point beyond the current 5.00 per cent-5.25 per cent range, while three others feel it needs to go even higher.
"Gold is under pressure just now following the Fed's 'hawkish pause', coupled with a rally in treasury yields and a US dollar bounce," said independent analyst Ross Norman.
The US dollar index climbed, making bullion more expensive for those holding other currencies.
Traders are now pricing in a roughly 74 per cent chance of a Fed rate hike in July, according to the CME Fedwatch tool, with rate cuts seen only in the first half of 2024.
"Physical markets showing some signs of life into this current price weakness but the major driver here, once again, is the outlook for the Fed's hiking cycle," said StoneX analyst Rhona O'Connell.
In the U.S. weekly jobless claims were unchanged from the previous week at 262,000, compared with a Reuters poll forecast for a dip to 249,000.
The European Central Bank raised rates for an eighth straight time as it tries to bring down inflation running at three times its 2 per cent target, while 64 economists polled by Reuters see the Bank of England also raising rates.
Gold prices in the euro and pound were down nearly 0.6 per cent.
Spot silver fell 2.4 per cent to $23.36 per ounce, platinum inched down 0.1 per cent to $973.98 while palladium rose 0.2 per cent to $1,388.46.
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