Bullion futures were seen falling for a third straight session on Thursday, dragged by the stronger US Dollar. This year, the yellow metal has rallied amid concerns over the global economy’s recovery.
Gold futures for immediate delivery traded 0.58% lower to trade at $1,241.00 per troy ounce during the early trading hours in Europe, while the silver metal fell 0.5% lower to $16.14 an ounce. Meanwhile, Platinum declined by 0.7% to $992.03 an ounce, while Palladium was down 0.3% to $543.70 an ounce.
The US dollar index climbed 0.33% higher to trade at 95.053 on Thursday, while holdings in the world’s biggest gold-backed exchange-traded fund, SPDR Gold Trust, declined by 3.8 metric tons to 1,761.9 tons on Wednesday.
Traders continue to raise concerns over possibilities that the Federal Reserve next move on the interest rate could weigh on the commodity, as the tightening of the monetary policy will boost the US dollar further.
Fed policymakers, Dennis Lockhart and Jerome Powell are due to deliver their speeches later in the day and are expected to hint the Federal Reserve’s next step.
The US inflation report is expected to be released later in the day, with a forecast of an annual rate of 1% in March. Consumer prices, excluding food and energy; are expected to rise 2.3%.