Gold trims its losses as dollar declines

Gold prices pared losses on Thursday as the dollar retreated from a two-decade high, although pressure continued on the precious metal amid rising US bond yields and hawkish comments on interest rate hikes from the Federal Reserve.

And gold fell in spot transactions 0.2 percent, recording 1670.40 dollars an ounce by 0926 GMT, after falling by up to one percent in the Asian session.

US gold futures rose 0.2 percent to $1,678.70 an ounce.

“High US bond yields continue to pressure gold prices. Unless yields suddenly start dropping and the dollar starts to fall, we probably won’t see a significant rise in gold prices,” said Michael Hewson, chief market analyst at CMC Markets.

The Federal Reserve raised interest rates by 75 basis points on Wednesday for the third time in a row, and indicated that more increases would come to tame rising inflation.

As for other precious metals, silver settled in spot transactions at $19.60 an ounce, platinum fell 0.4 percent to $903.90, while palladium fell 0.2 percent to $2150.02.