FX.co ★ Gold Edges Lower On Dollar Strength

Gold prices edged lower on Thursday to hover near six-week lows after marking a fifth monthly drop in August.

Spot gold dipped 0.4 percent to $1,703.80 per barrel, while U.S. gold futures were down 0.7 percent at $1,714.50.

A firmer dollar and higher Treasury yields weighed on the precious metal after several Fed officials reiterated their support for further interest-rate hikes to combat inflation.

Cleveland Fed President Loretta Mester said Wednesday that policy makers should raise rates beyond 4 percent and deliver no rate cuts in 2023.

Markets currently are pricing in only a 1-in-3 chance of the funds rate climbing above 4 percent next year.

Elsewhere in Europe, French central bank chief Francois Villeroy de Galhau said on Wednesday the European Central Bank should show determination with interest-rate increases while also acting in an orderly and predictable way.

Investors are betting that the U.S. Federal Reserve and the ECB will both raise their key borrowing costs by 75 basis points when they meet later this month.