Gold prices fell on Thursday as the US dollar strengthened and moved close to its highest level in a month. The rise in the dollar came after higher-than-expected US inflation data increased expectations that the Federal Reserve could raise interest rates next month.
Spot gold dropped 0.2% to $3,979.09 per ounce, while US gold futures for December delivery fell 0.4% to $3,984.50.
A stronger dollar makes gold more expensive for buyers using other currencies, putting pressure on demand. Expectations of tighter monetary policy also weighed on the precious metal, as traders increasingly see a US interest rate hike in December as likely.
In other metals, silver fell 0.6% to $51.40 per ounce, while palladium declined 0.3% to $1,024.48 per ounce.