Gold prices slide 0.3% on Thursday

Gold prices extended their decline for a third consecutive session on Thursday, dropping 0.3 per cent to $2,370.74 per ounce by 03:35 GMT, Reuters reported. This follows a steeper decline of over one per cent on Wednesday.

The precious metal had reached a record high of $2,449.89 earlier this week on Monday. US gold futures also mirrored the spot price, falling 0.8 per cent to $2,373.00.

The gold selloff was triggered by the release of minutes from the recent Federal Reserve meeting, which suggested that current interest rates may be maintained but also hinted at potential future rate hikes.

Gold’s appeal as an inflation hedge diminishes when interest rates rise, as investors are presented with alternative options that offer returns.  Higher rates raise the opportunity cost of holding non-yielding gold, said Tim Waterer, chief market analyst at KCM Trade.

Looking ahead, analysts predict gold prices could potentially slide further, possibly reaching support levels around $2,355, especially if the US dollar strengthens.

The Fed’s stance has also impacted market expectations for future rate cuts. Currently, traders project only a 73 per cent chance of a single rate cut by November 2024, reflecting growing doubts about the possibility of more aggressive reductions.

Meanwhile, spot silver fell 0.8 per cent to $30.52 per ounce, while platinum edged down 0.2 per cent to $1,032.54. Palladium prices experienced the steepest decline, dropping 1.1 per cent to $988.25.