Gold falls over 1% as US inflation data boosts Fed hike bets
GLD•ECB rate hike and other metals fall
Meanwhile, the European Central Bank on Thursday raised interest rates the second time this year, seeking to quell an energy-driven rise in inflation triggered by the war.
Among other metals, spot silver XAG= slid 4.6% to $64.19 per ounce, platinum XPT= dropped 5.5% to $1,791.13 and palladium XPD= fell 5.1% to $1,283.52.
Gold drops after stronger U.S. inflation data
Gold prices dropped over 1% on Thursday after robust U.S. inflation data and rising oil prices increased bets for a Federal Reserve rate hike next week.
Spot gold XAU= slipped 1% to $4,355.85 per ounce by 01:42 p.m. EDT (1742 GMT). Earlier, bullion fell about 1.7% to touch $4,323.78, its lowest level of the session.
U.S. gold futures GCcv1 dropped 1.2% to settle at $4,407.30.
The Producer Price Index (PPI) data "sort of tells us that there has been a bit of a pickup in underlying inflation in the U.S. economy, and a part of that is due to rising energy costs," said Kyle Rodda, senior financial market analyst at Capital.com.
PPI for final demand rose 0.4% last month after an upwardly revised 0.1% gain in July, the Labor Department's Bureau of Labor Statistics said on Thursday.
