Gold prices hovered near their lowest level in two months on Thursday, as expectations of aggressive U.S. policy tightening boosted the dollar and added pressure on non-yielding bullion.
Spot gold fell 0.1 percent to $1,885.06 per ounce by 1:04 p.m. GMT. It hit $1,871.81, its lowest since Feb. 17 earlier in the session. U.S. gold futures also eased 0.1 percent, to $1,886.00.
“With the Fed seen hiking interest rate by 50 basis points and possibly 75 basis points in the next two meetings after the May 4 (meeting), the dollar is going to remain in demand… For that reason it’s very difficult to be bullish on gold at the moment,” said Fawad Razaqzada, market analyst at City Index.
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