Gold Deteriorates To Two Year Lows Below $1670

Gold and silver prices were lower in early U.S. trading Thursday, with gold falling to a seven-week low hitting $1667 per ounce versus Wednesday’s closing price at $1696.79.

The soaring US dollar index along with rising Treasury yields and some hotter US inflation data, have all combined to keep gold and silver buyers mostly standing on the sidelines.

The marketplace is calmer late this week, after absorbing a hot US consumer price index report on Tuesday that jolted markets. Traders are now focusing on next week’s FOMC meeting, which is expected to see the Fed raise the key U.S. Fed funds rate by 0.75% in its effort to tamp down problematic price inflation.