The euro briefly rebounded back above parity with the dollar on Thursday as the US currency's recent rally ran out of steam
Rate hikes increase the opportunity cost of holding bullion, which pays no interest, while boosting the greenback
"India has continued to post wide trade deficits due to higher prices of oil and other commodities, which have eroded INR's basic balance buffer," the research house said.
Gold snapped a six-session losing streak while Wall Street was little changed on hopes the Fed will turn dovish
The S&P flash composite PMI, which tracks manufacturing and services, showed that a downturn in Germany, Europe's biggest economy, deepened in August due to high inflation and rising interest rates.
Extending losses into a sixth session, spot gold was down 0.7% to $1,736.03 per ounce by 11:23 a.m. EDT (1523) GMT after hitting its lowest level since July 27 earlier in the session.
China's yuan dropped to its lowest in nearly two years after the central bank cut key lending rates.
U.S. Federal Reserve Chair Jerome Powell headlines a host of policy makers at Jackson Hole later in the week and the risks are that he will not meet investor hopes for a dovish pivot on policy.
Spot gold dropped 0.6% to $1,748.58 per ounce by 1:47 p.m. ET (1747 GMT), having hit its lowest since July 28 earlier in the session. U.S. gold futures settled down 0.5% at $1,762.9.
The dollar touched a three-week high on Thursday after minutes from the Federal Reserve's July meeting pointed to U.S. interest rates staying higher for longer to bring down inflation.
Spot gold slid 1.3% to $1,778.35 per ounce by 11:16 ET, having hit its lowest since Aug. 8 earlier in the session. U.S. gold futures dropped 1.2% to $1,794.20.
Economists polled by Reuters had forecast a 0.2% rise on the heels of a roughly 20% drop in the cost of gasoline
Stakes are high for July US consumer prices report on Wednesday after an unexpectedly strong US jobs data last week boosted expectations of a sharp interest rate increase to tackle soaring inflation
LONDON (Reuters) - The U.S. dollar edged lower on Wednesday but held on to most of the previous day's gains, after leaping on Federal Reserve officials' hints at aggressive rate hikes and drawing support amid a U.S.-China flare-up over Taiwan.
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If the Fed turns less aggressive, the yellow metal could stage a comeback
The second straight quarterly decline in GDP meets the standard definition of a recession. It comes as the Fed aggressively hikes rates in an attempt to choke off soaring inflation.
The U.S. Federal Reserve had surprised no one by lifting rates 75 basis points (bps) to 2.25%-2.50% on Wednesday, but did alter its statement to cite some softening in recent data.
Euro nursed losses on Wednesday after its sharpest drop in two weeks, as a cut in Russian gas supply sent energy prices soaring, while the dollar held ground ahead of an expected Fed hike.
RBI's interventions and a less hawkish view on US Federal Reserve among factors that help currency