Gold prices were subdued on Thursday as the dollar stood tall, hitting fresh two-decade highs on concerns that tighter monetary policies to tame surging inflation could slow global economic growth.
Spot gold slipped 0.1 percent to $1,849.99 per ounce while U.S. gold futures were down 0.3 percent at $1,849.17.
U.S. consumer price inflation data released overnight did little to ease investor worries over the outlook for inflation and interest rates.
The dollar has been rising for five straight weeks, tracking gains in U.S. Treasury yields on expectations of further tightening from the Fed.
Federal Reserve Bank of St. Louis James Bullard said on Wednesday he was content with a plan to raise interest rates by 50 basis points at each of the next two meetings and would like to see the Fed’s policy rate go up to 3.5 percent by the end of the year.
On the data front, the U.S. will release its PPI and initial jobless claims later today. San Francisco Fed President Mary Daly will speak.