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Gold prices inched lower on Friday as the dollar held gains amid uncertainty over how big will future U.S. rate hikes be.<\/p>\n
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.<\/p>\n
The dollar held near a one-month high after three Fed policymakers took a hawkish tone on interest-rate hikes. <\/p>\n
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”.<\/p>\n
Kansas City Fed president Esther George noted that the drop in inflation registered in July was not evidence the underlying problem was fixed.<\/p>\n
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.<\/p>\n
Producer prices grew 37.2 percent year-over-year in July, well above the 32.7 percent surge in June, Destatits reported.<\/p>\n
The upward trend in July was largely caused by a 105.0 percent jump in energy prices amid soaring natural gas and electricity costs. <\/p>\n<\/p>\n<\/div><\/div>\n