Gold closed with a loss on Thursday, dropping for a third-straight session as the US dollar and bond yields are on the rise.
Gold for December delivery closed down US$12.80 to settle at US$1,763.00 per ounce.
The drop comes as the dollar continues to recover from a sell-off earlier this month after the US reported inflation rose less than expected in October, raising hopes the Federal Reserve could reconsider the pace of its interest-rate hikes, though an unexpectedly strong rise in retail sales last month reported on Wednesday showed the central bank may not have yet slowed the economy sufficiently to suppress demand.
"The metal is currently dealing with mixed signals as elevated recession worries, highlighted by the most inverted yield curve in almost four decades, are being offset by the biggest increase in US retail sales in eight months, indicating Fed tightening has further to run to bring inflation under control," Saxo Bank noted.
The ICE dollar index was last seen up 0.42 points to 106.69, making gold more expensive for international buyers.
The yield on the US 10-year note was last seen up 8.9 basis points to 3.782%, bearish for gold since it offers no interest
Gold for December delivery closed down US$12.80 to settle at US$1,763.00 per ounce.
The drop comes as the dollar continues to recover from a sell-off earlier this month after the US reported inflation rose less than expected in October, raising hopes the Federal Reserve could reconsider the pace of its interest-rate hikes, though an unexpectedly strong rise in retail sales last month reported on Wednesday showed the central bank may not have yet slowed the economy sufficiently to suppress demand.
"The metal is currently dealing with mixed signals as elevated recession worries, highlighted by the most inverted yield curve in almost four decades, are being offset by the biggest increase in US retail sales in eight months, indicating Fed tightening has further to run to bring inflation under control," Saxo Bank noted.
The ICE dollar index was last seen up 0.42 points to 106.69, making gold more expensive for international buyers.
The yield on the US 10-year note was last seen up 8.9 basis points to 3.782%, bearish for gold since it offers no interest