Gold prices fell on Thursday, pressured by a stronger dollar, as investors assessed economic data suggesting the US Federal Reserve may take a more cautious approach to interest rate cuts.
Spot gold fell 0.3% to $2,627.60 per ounce by 0302 GMT, while U.S. gold futures fell 0.5% to $2,627.00. The dollar index rose 0.1%, reducing gold's appeal to holders of other currencies.
The market is focused on interest rate cuts by the US Federal Reserve, with the latest core personal consumption expenditures data pointing to slowing inflation, reinforcing expectations that the Fed's policies next year will be less dovish than previously expected, said Kelvin Wong, senior market analyst for Asia-Pacific at OANDA.
According to the CME FedWatch tool, markets are currently pricing in a 64.7% chance of a quarter-point rate cut in December.
Trading is expected to be modest as U.S. markets are closed on Thursday for the Thanksgiving holiday.
Wong added that in the short term, especially in the next few days or two weeks, gold may come under further pressure. However, the outlook for gold is still bullish in the long term.
As for other precious metals, silver fell by about 1% to $29.78 per ounce, platinum fell by 0.1% to $928.05, while palladium settled at $972.75.
