Gold prices fell more than 1% on Thursday, reaching their lowest level in over a week as the US dollar strengthened. Investors also awaited key US inflation data, which could provide insight into the Federal Reserve’s monetary policy.
Spot gold declined 1.2% to $2,880.79 per ounce by 0910 GMT, its lowest since February 17, after hitting a record high of $2,956.15 on Monday amid safe-haven demand. US gold futures dropped 0.7% to $2,909.30.
The dollar index rose 0.2%, making dollar-priced gold more expensive for holders of other currencies. President Donald Trump’s announcement of a potential month-long pause on tariffs for Mexico and Canada, along with a proposed 25% tariff on European imports, sparked renewed demand for the dollar, pressuring gold prices further, according to Lukman Otunuga, senior research analyst at FXTM.
Markets are also looking to the Personal Consumption Expenditures (PCE) index due Friday, with expectations for a 0.3% increase. Investors are anticipating at least two rate cuts by the Federal Reserve this year, with some pricing in 55 basis points of easing in 2025.
Spot silver fell 0.7% to $31.62 an ounce, while platinum gained 0.2% to $967.30 and palladium rose 0.1% to $927.50.
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