Gold declines to two-week lows after Fed's statements

Gold prices fell in European trade, sharpening the decline for the fourth straight session away from three-month highs, and plumbing two-week lows as the dollar powers up against major rivals. 

Dollar's gains came after a batch of bullish statements from Fed officials, which bolstered the case once more for a 0.75% rate hike in December.

Gold Prices Today

Gold prices fell 0.6% to $1,740 an ounce, the lowest since November 10, after losing 0.5% on Friday, the third loss in a row on profit-taking off three-month highs at $1,786.

Gold lost 1.1% last week, the first weekly loss in three weeks, as the dollar rebounded against a basket of major rivals.

The Dollar

The dollar index rose over 0.6% today for the third straight session, hitting two-week highs at 107.63 against a basket of major rivals. 

Such gains came after bullish remarks by Fed officials, which raised chances once more of a 0.75% rate hike in December. 

Fed Remarks 

 Fed member Christopher Walrer said yesterday that the Fed will keep on its fight against inflation until it's completely brought down to just 2%.

Saint Louis Fed President James Bullard said the current trajectory of inflation requires raising interest rates to 5% at least, with some strict estimates pushing rates to above 7%. 

Fed Rates

Chances of a 0.75% rate hike by the Fed in December rose from 15% to 25% in betting markets, while chances of a 0.5% rate hike fell from 85% to 75%. 

The SPDR

Gold holdings at the SPDR Gold Trust fell on Friday by 1.73 tones to a total of 904.62 tones.