Gold prices fell on Thursday as the dollar floated near its highest level in several weeks, while some investors sold the yellow metal for profit ahead of meetings of major central banks this month.
The European Central Bank will meet later today, followed by the Federal Reserve meeting on Tuesday and Wednesday.
By 05;32 GMT, spot gold fell 0.3% to $ 1422.03 an ounce. Gold futures fell 0.
Pressured by gold prices to push it down, the dollar index is near the two-month high reached in the previous session. A rising dollar would increase the cost of holding gold to investors from other currency holders.
Investors' focus shifts to the European Central Bank meeting, which will take place later in the day, and wide-ranging expectations that the Federal Reserve will cut interest rates next week, which is expected to determine the pace of currency and bond yields in the coming months.
A drop in US interest rates puts pressure on the dollar and bond yields, increasing demand for gold that is not yielding.
Gold prices have risen more than 12% or $ 150, since hitting the lowest level in 2019 at $ 1265.85 in early May, driven by expectations of major central banks easing monetary policy, signs that the US economy is losing momentum, and tensions in the Middle East .
For other precious metals, silver fell 0.6% to $ 16.48 an ounce, after hitting its highest level in more than a year at $ 16.64 in the previous session.
Platinum rises 0.3% to $ 878.04 an ounce, its highest level since May 7, while palladium gained 0.2% to $ 1543.50 after touching a week high earlier in the session.