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Gold dips as dollar firms; focus on Fed cues; Spot gold hits $1,744.83 per ounce

Gold dips as dollar firms; focus on Fed cues; Spot gold hits $1,744.83 per ounce

Spot gold fell 0.3% to $1,744.83 per ounce by 06:50 GMT. US gold futures GCv1 shed 0.5% to $1,746.20.

Gold could test the $1,735 and $1,729 support levels ahead of the minutes from the Fed's last meeting on Wednesday Gold could test the $1,735 and $1,729 support levels ahead of the minutes from the Fed's last meeting on Wednesday

Gold crept lower on Monday, after marking its worst week in five, pressured by a pop in the dollar while traders awaited further cues on central banks' interest rates strategy.

Spot gold fell 0.3% to $1,744.83 per ounce by 06:50 GMT. US gold futures GCv1 shed 0.5% to $1,746.20.

Bullion fell 1.2% last week, its worst since the one ending Oct. 14, despite scaling a peak since mid-August on Nov. 15.

With no major economic news to drive sentiment in Asia, "traders are tentatively bullish on the dollar following hawkish comments from the US Federal Reserve members last week, which is weighing on gold," said City Index analyst Matt Simpson.

The dollar index rose, making gold less attractive for overseas buyers.

Gold could test the $1,735 and $1,729 support levels ahead of the minutes from the Fed's last meeting on Wednesday. There's potential for the dollar to continue higher, should they be more hawkish than expected ahead of US Thanksgiving (holidays) on Thursday, Simpson added.

Atlanta Fed President Raphael Bostic said on Saturday he is ready to "move away" from three-quarter-point rate hikes at the Fed's December meeting. But the central bank is still expected to raise rates by 50 basis points, a view endorsed by other Fed officials recently.

"Investors are still very much focused on the interest rate cycle, the recent statements by Fed officials have renewed bearish sentiment (in gold)", said Michael Langford, director at corporate advisory firm AirGuide.

See gold trading between $1,680 - $1,740 over the next week, Langford added.

High interest rates discourage investing in non-yielding gold.

Investors also kept a close tab on the economic fallout from fresh COVID-19 restrictions in top bullion consumer China.

Chinese physical gold premiums fell sharply last week as buying slowed.

Spot silver slipped 0.6% to $20.79 per ounce, platinum dropped 0.8% to $968.74, and palladium fell 0.9% to $1,919.90.