Gold prices on Thursday, June 21, hit six-month low, pressured by a firm dollar and as the U.S. Federal Reserve Chair kept its outlook for higher interest rates.
Spot gold fell 0.4 percent to $1,262.88 an ounce by 0637 GMT. It hit its lowest since Dec. 20 at $1,261.36 earlier, having lost about 3 percent over the last five sessions.
U.S. gold futures for August delivery were down 0.8 percent at $1,264.50 per ounce.
“Precious metal (gold) is firmly in a downtrend and this is mainly due to the strength in the dollar index which is trading at a significant level,” said ThinkMarkets chief market analyst Naeem Aslam.
The dollar held near an 11-month high against a basket of currencies on Thursday, supported by a rise in U.S. yields, while the pound was at its lowest level since November 2017 ahead of a Bank of England monetary policy decision.
Gold prices, which can benefit in times of uncertainty, failed to gain so far this week, despite the ongoing trade war.
Spot gold may drop to $1,258 per ounce, as a support at $1,268 does not seem to hold, said Reuters technicals analyst Wang Tao.
In other precious metals, silver fell 0.5 percent to $16.18 an ounce, having earlier touched its lowest since early May at $16.16.
Palladium was 0.3 percent lower at $961.47 per ounce. It hit $959 earlier in the session, its lowest since May 4.
Platinum slid 0.9 percent to $857.49 an ounce. It touched $854.50, its lowest since Feb. 3, 2016, in the previous session.
