A stronger dollar makes gold more expensive for overseas buyers.(File)Gold prices fell on Thursday after U.S. Federal Reserve Chair Jerome Powell said more interest rate hikes would come next year.Spot gold slipped 0.7% to $1,794.22 per ounce, as of 0345 GMT, retreating further from a more than five-month high scaled on Tuesday. U.S. gold futures were down 0.8% at $1,804.20.The Fed will deliver more rate hikes next year, even as the U.S. economy slips towards a possible recession, Powell said on Wednesday, arguing a higher cost would be paid if the central bank does not get a firmer grip on inflation.A hawkish Fed is weighing on the bullion market and gold’s outlook hinges on how much more tightening central banks, in particular the Fed, plan to do from here, said OCBC FX strategist Christopher Wong.”Broadly into 2023, I still favour gold to trade higher but near term into end-year, I won’t rule out any profit-taking or pullback in prices.”Gold is traditionally considered an inflation hedge but higher interest rates dim bullion’s appeal by increasing the opportunity cost of holding the non-yielding metal.”We see scope for some retracement of gold’s recent gains, but expect safe-haven buying to raise prices. We have subsequently raised our end of 2023 target to $1,900/oz,” ANZ said in a note.The dollar index was up 0.1%. A stronger greenback makes gold more expensive for overseas buyers.Marker participants now await rate-hike decisions from the Bank of England and the European Central Bank later in the day, with both expected to deliver a 50-basis point rate hike.Traders will also scan upcoming economic data, including the weekly U.S. jobless claim numbers due at 1330 GMT, for their likely influence on the Fed’s rate-hike strategy.Silver fell 2.4% to $23.33 per ounce, platinum lost 1.4% to $1,014.51 and palladium was down 0.7% to $1,903.29.Featured Video Of The DayHas Travel Industry Recovered From Covid Pandemic? EaseMyTrip Co-Founder Answers
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