Gold is falling with the strength of USD

Gold prices are heading on Thursday to end a series of gains achieved over three sessions, pressured by the rise in the dollar and the possibility of the Federal Reserve conducting more interest rate hikes, which clouded the expectations of the prices of the yellow metal.

And by 1030 GMT, spot gold fell 0.3 percent to $ 1831.10 an ounce, after reaching the highest level in a week on Wednesday. US gold futures fell 0.4 percent to $1,837.20.

Although considered a hedge against inflation, raising interest rates to curb prices increases the opportunity cost of holding non-yielding precious metal.

Fed officials were divided on Wednesday over whether data pointing to high inflation and a job market brimming with opportunities mean a slow rate hike or simply require that existing monetary tightening be maintained for a longer period.

Investors are awaiting the release of the US weekly jobless claims report on Thursday.

Also putting pressure on gold, US Treasury bond yields for ten years reached the highest level since early November 2022, and the dollar index also increased 0.3 percent.

Among other precious metals, spot silver fell 1.1 percent to $20.76 an ounce, but platinum rose 0.2 percent to $957.07. Palladium fell 0.5 percent, recording $1,432.48.