Gold prices dropped to a one-week low Thursday. A stronger US dollar, rising oil prices, and expectations for higher interest rates pressured the precious metal.
Spot gold declined 0.4% to $4,271.16 an ounce in New York. This marked its lowest level since September 16. US gold futures for December delivery also fell 0.3% to $4,306.
The US dollar climbed to a two-month high. Higher US Treasury yields hovered near a two-decade high, making non-yielding gold less attractive. Traders expect the Federal Reserve to adopt a more aggressive stance on interest rates, which typically hurts bullion.
Oil prices increased about 1% following stalled talks between the US and Iran. Rising energy costs can fuel inflation, complicating central bank efforts to control price growth.
Other precious metals also saw mixed movements. Spot silver fell 1.8% to $63.29 per ounce. Platinum dropped 0.2% to $1,746.44, while palladium gained 0.5% to reach $1,266.40.
