FX.co ★ Gold Hits Two-week Low On Fed Concerns

Gold prices slipped on Thursday to hit two-week lows as the dollar held near recent peaks, diminishing the precious metal's safe-haven appeal.

Spot gold dipped 0.4 percent to $1,690.51 per ounce, while U.S. gold futures were down 0.6 percent at $1,699.40.

The dollar index remained supported by rising Treasury yields on expectations that the Federal Reserve will continue to raise rates aggressively to tackle high inflation.

The Fed is expected to deliver a third consecutive 75 basis-point rate hike when it meets next week.

Fed funds futures suggest a 28 percent chance of a 100 basis-point rate hike after stronger-than-anticipated U.S. inflation figures for August.

In economic news, U.K. consumer confidence slipped into negative territory for the first time since June 2020, while French consumer price inflation slowed less than expected in August, separate reports showed.

Elsewhere, Germany's wholesale price inflation eased for the fourth month in a row in August but remained at an elevated level.

U.S. retail sales, import and export prices and industrial production, all for August, as well as weekly jobless claims for the week ended September 10, business inventories for July and New York Fed's empire manufacturing survey for September will be out in the New York session.