Gold fell below $1,800 on Friday en route to a third straight weekly dip as a stronger dollar and prospects of higher interest rates eroded its safe-haven appeal, with an import tax hike by India also seen dampening demand for bullion, reports Reuters.
Spot gold fell 0.6% to $1,795.89 per ounce by 0925 GMT, after touching its lowest since May 16 at $1,791.30.
U.S. gold futures dipped 0.7% to $1,795.10.
Coming off their worst quarter since early 2021 amidst aggressive monetary policy from top central banks, non-interest bearing gold has lost about 1.7% so far this week, with a stronger dollar heaping further pressure.
The ECB is also likely to start raising rates this month.
"Despite the current risk off mood and with financial markets a 'sea of red', the go-to safe haven just now is the U.S. dollar," rather than precious metals, independent analyst Ross Norman said.
Norman said "the very significant increase in import duties in India" had also hurt prices.
India, the world's second biggest bullion consumer, raised its basic import duty on gold to 12.5% from 7.5% in a bid to bring down the trade deficit. Gold's retreat came despite data showing euro zone manufacturing production fell last month for the first time since the initial wave of the COVID-19 pandemic two years ago.
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