(RTTNews) – Gold prices inched lower on Friday as the dollar held gains amid uncertainty over how big will future U.S. rate hikes be.
Spot gold dipped 0.3 percent to $1,753.91 per ounce, while U.S. gold futures were down 0.2 percent at $1,767.20.
The dollar held near a one-month high after three Fed policymakers took a hawkish tone on interest-rate hikes.
St Louis Fed president James Bullard said he expects a third straight 75-basis-point interest rate hike in September, while San Francisco Fed colleague Mary Daly said that raising rates by 50 or 75 basis points next month would be “reasonable”.
Kansas City Fed president Esther George noted that the drop in inflation registered in July was not evidence the underlying problem was fixed.
Inflation worries were back in focus after data showed Germany’s producer price inflation accelerated unexpectedly to a new record high in July, primarily driven by higher energy costs.
Producer prices grew 37.2 percent year-over-year in July, well above the 32.7 percent surge in June, Destatits reported.
The upward trend in July was largely caused by a 105.0 percent jump in energy prices amid soaring natural gas and electricity costs.