FX.co ★ Gold Dips On Dollar Strength After Retail Sales Surprise To Upside

Gold prices fell on Thursday as the dollar steadied on hawkish Fed remarks and strong U.S. retail sales data released overnight.

Spot gold dipped half a percent to $1,765.30 per ounce, while U.S. gold futures were down half a percent at $1,768.05.

The recent gold rally has run out of steam as strong U.S. retail sales data cast doubt on recent hopes that inflation is declining and that the Fed will scale down the pace of its rate increases.

San Francisco Fed President Mary Daly told CNBC that pausing rate hikes is not yet part of the discussion.

New York Fed President John Williams said the central bank should avoid incorporating financial stability risks into its considerations.

Fed Governor or Christopher Waller stressed that he won't make a judgement about the pace of rate hikes until he sees more data, including the next PCE inflation report and the next jobs report.

An inversion of the U.S. yield curve deepened further, suggesting that the Fed may continue raising rates to curb inflationary pressures.

The dollar index edged up slightly, while benchmark U.S. 10-year Treasury yields were below the 4 percent threshold.