Gold prices drop over 1% on US rate hike expectations

Gold prices fell by more than 1% on Thursday, pressured by hawkish remarks from a US Federal Reserve official that reinforced expectations of an interest rate hike in December.

Spot gold dropped 1.5% to $4,078.53 per ounce, while US gold futures for December delivery slipped 0.7% to $4,086.30.

Markets are now awaiting US inflation data, with analysts saying that persistently high prices could strengthen the dollar and reduce the appeal of non-yielding gold.

Among other precious metals, silver declined 1.9% to $52.42 per ounce, platinum fell 1.1% to $1,560.08, and palladium eased 0.51% to $1,036.24.