<p>Gold prices fell to a near two-week low on Thursday, as the dollar and US bond yields climbed after hawkish comments from Federal Reserve Chair Jerome Powell dashed hopes around easing of monetary tightening from December.</p>.<p>Spot gold dropped 0.5 per cent to $1,626.17 per ounce, while US gold futures slipped 1.3 per cent to $1,628.30.</p>.<p>"The sentiment in the gold market is clearly negative. In case of continued aggressive tightening, more sentiment-driven and dollar-driven selling remains the biggest risk for gold. Prices could undershoot," said Julius Baer analyst Carsten Menke.</p>.<p>"Considering how bearish the mood in the gold and silver markets already is today, we believe that prices should remain rather rangebound in this scenario –that is between $1,650 and $1,600," Menke added.</p>.<p>The US central bank raised interest rates by 75 basis points on Wednesday and signalled it may be nearing an inflection point.</p>.<p>Bullion rose as much as 1.3 per cent after the release of the Fed policy statement, before ending the session 0.8 per cent lower on Powell's remarks.</p>.<p>Higher US interest rates increase the opportunity cost of holding the non-yielding asset and boosts the dollar.</p>.<p>The dollar was up 1.2 per cent against its rivals, making gold more expensive for other currency holders. Benchmark US 10-year Treasury yields also rose.</p>.<p>Attention now shifts to Friday's US nonfarm payrolls data, which could provide more cues on the resilience of the labour market and Fed rate-hike path.</p>.<p>"For gold bulls hoping for an indication of a pivot or even pause in rate increases by the Fed, this was a disappointment as Powell remains resolutely hawkish," said Ross Norman, an independent analyst.</p>.<p>"That said, seasonality is in favour of good offtake so likely we are nearing a floor for gold soon," Norman added.</p>.<p>Elsewhere, spot silver fell 0.9 per cent to $19.10 per ounce, platinum slipped 1.3 per cent to $917.62, and palladium shed 0.8 per cent to $1,840.99.</p>
<p>Gold prices fell to a near two-week low on Thursday, as the dollar and US bond yields climbed after hawkish comments from Federal Reserve Chair Jerome Powell dashed hopes around easing of monetary tightening from December.</p>.<p>Spot gold dropped 0.5 per cent to $1,626.17 per ounce, while US gold futures slipped 1.3 per cent to $1,628.30.</p>.<p>"The sentiment in the gold market is clearly negative. In case of continued aggressive tightening, more sentiment-driven and dollar-driven selling remains the biggest risk for gold. Prices could undershoot," said Julius Baer analyst Carsten Menke.</p>.<p>"Considering how bearish the mood in the gold and silver markets already is today, we believe that prices should remain rather rangebound in this scenario –that is between $1,650 and $1,600," Menke added.</p>.<p>The US central bank raised interest rates by 75 basis points on Wednesday and signalled it may be nearing an inflection point.</p>.<p>Bullion rose as much as 1.3 per cent after the release of the Fed policy statement, before ending the session 0.8 per cent lower on Powell's remarks.</p>.<p>Higher US interest rates increase the opportunity cost of holding the non-yielding asset and boosts the dollar.</p>.<p>The dollar was up 1.2 per cent against its rivals, making gold more expensive for other currency holders. Benchmark US 10-year Treasury yields also rose.</p>.<p>Attention now shifts to Friday's US nonfarm payrolls data, which could provide more cues on the resilience of the labour market and Fed rate-hike path.</p>.<p>"For gold bulls hoping for an indication of a pivot or even pause in rate increases by the Fed, this was a disappointment as Powell remains resolutely hawkish," said Ross Norman, an independent analyst.</p>.<p>"That said, seasonality is in favour of good offtake so likely we are nearing a floor for gold soon," Norman added.</p>.<p>Elsewhere, spot silver fell 0.9 per cent to $19.10 per ounce, platinum slipped 1.3 per cent to $917.62, and palladium shed 0.8 per cent to $1,840.99.</p>