Gold drops on stronger US dollar

Gold prices extended losses for a second day on Thursday due to a stronger US dollar and higher Treasury yields, as Reuters reported. Investors are watching for Friday’s inflation data to gauge the Federal Reserve’s interest rate decisions.

Spot gold fell 0.4 per cent to $2,330.44 per ounce by 0311 GMT, following a one per cent drop on Wednesday. US gold futures mirrored the decline, slipping 0.5 per cent to $2,328.60.

The US dollar gained 0.5 per cent, making gold less attractive for investors holding other currencies. Additionally, benchmark US 10-year bond yields remained near multi-week highs reached in the previous session.

Other metals, spot silver fell 1.7 per cent to $31.40, platinum dipped 0.3 per cent to $1,032.25, and palladium lost 2.1 per cent to $944.75.