By Karthika Suresh Namboothiri
BENGALURU (Reuters) - Gold eased to a one-week low on Thursday, as a recovery in the dollar and improved appetite for riskier assets ahead of the U.S. Federal Reserve's policy statement, pushed investors away from bullion.
Spot gold fell 0.1 percent to $1,224.78 per ounce at 11:27 EST, after touching its lowest since Nov. 1 at $1,219.59 earlier in the session.
U.S. gold futures for December delivery fell 0.3 percent to $1,225.5 per ounce.
"The market is drifting a little lower today on expectations of further rate hikes. If the rates go higher, it is a slightly negative story for gold."
Although the Fed is not expected to raise interest rates until its next gathering in December, market participants are waiting to see whether it offers clues about possible rate increases in December and in 2019.
Higher interest rates raise the opportunity costs of holding gold, which earns nothing and costs money to store and insure.
"A failure to continue the momentum a little higher could see gold moving back to the psychologically (important) $1,200 level," Norman said.
The dollar extended its recovery following a sigh of relief across markets after the U.S. midterm election results, and as investors turned their attention towards the Fed. [USD/]
Gold is on track to post a fifth straight session of losses, hurt more broadly by a recovery in investor appetite for nominally higher-risk assets like stocks. [MKTS/GLOB]
"A rebound in the U.S. dollar index today, following selling pressure this week, is working against the precious metals market bulls."
Silver fell 0.9 percent to $14.44 per ounce.
Palladium was steady at $1,134.0 per ounce. It touched a two-week high of $1,139.50 an ounce in the previous session.
Platinum was down 0.1 percent at $872.2 an ounce, after hitting its highest since June 25 at $877.50 an ounce on Wednesday.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)