 "Gold")
Gold prices steadied after dropping to a 2-1/2-year low on Monday as the dollar rally took a breather, while analysts expected a further drop in prices with more interest rate hikes by the U.S. Federal Reserve looming.
Spot gold was little changed at $1,645.47 per ounce as of 0724 GMT. Prices fell as much as 1% earlier in the session to hit $1,626.41, their lowest level since April 2020.
U.S. gold futures fell 0.4% to $1,648.70.
The dollar index, which gauges the greenback versus six peers, was flat after scaling a fresh peak since 2002 boosted by a plunge in British sterling. [USD/]
"I expect prices to continue this mild weakness with U.S. interest rates expected to rise in coming quarters and also many investors are shifting their focus to safe-havens like the dollar rather than gold," said Hareesh V, head of commodity research at Geojit Financial Services.
"An increase in physical demand from India could provide slight support but I don't see a major rally happening in coming days."
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The U.S. central bank and a number of other major central banks raised interest rates last week, triggering concerns over the impact on growth.
A survey showed on Friday a downturn in business activity across the euro zone deepened in September.
Higher U.S. interest rates dull the zero-yielding bullion's appeal while bolstering the dollar in which gold is priced.
Gold prices have fallen more than 20% since scaling above the key $2,000 per-ounce mark in March.
"It's very difficult to construct a bullish case for gold, not until we see a pivot with the Fed especially with (other) central banks tracing up with the Fed as well," said City Index analyst Matt Simpson.
Spot silver fell 0.6% to $18.72 per ounce, having earlier fallen to its lowest in more than two weeks. Platinum rose 0.7% to $859.62 and palladium edged 0.2% higher to $2,072.02.
(Reporting by Eileen Soreng in Bengaluru; Editing by Subhranshu Sahu, Sherry Jacob-Phillips, Philippa Fletcher)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
