Metal prices were under pressure Thursday as solid U.S. economic data renewed bullish bets on the greenback, pressuring Gold prices toward the psychologically important $1,200 level.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange fell by $5.90, or 0.50%, to $1,205.50 troy ounce, just above an intraday low of $1,202.10.
Gold prices, which are on track to resume their weekly decline, after snapping a six-week losing streak last week, came under pressure following a rise in the dollar on data showing inflation continued to meet the Federal Reserve's target and consumer spending remained firm.
The Federal Reserve's preferred inflation measure -- the personal consumption expenditures (PCE) price index excluding food and energy -- rose 2% in the 12 months through July.
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.4% last month, the Commerce Department said on Thursday.
The duo of reports added to already-heightened investor expectations for a Federal Reserve rate hike at next month's meeting.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.23% to 94.68.
According to 's Fed Rate Monitor Tool, 100% of traders expect the Federal Reserve to raise rates in September.
Gold is sensitive to moves higher in both bond yields and the U.S. dollar. A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding gold as it pays no interest.
The wider metals struggled to pare losses as the headwind from a stronger dollar was exacerbated by concerns that the U.S.-China trade war could intensify.
U.S. President Donald Trump has told aides he wants to move ahead on a plan to impose tariffs on Chinese imports worth $200 billion next week, Bloomberg News reported Wednesday.
Copper prices fell 0.64% to $2.72 a pound, while zinc prices plunged 2.30% at 2,458.50.
Aluminium prices lost 1.31% to 2,131.75, while nickel futures fell 1.06% to 13,307.50.
Silver futures dropped 1.51% to $14.48 a troy ounce, while Platinum futures fell 0.58% to $792.00.
