WASHINGTON (dpa-AFX) - Gold prices recovered from a one-month low on Thursday as investors looked forward to key U.S. data due this week for more cues on monetary policy.
Spot gold rallied 1.3 percent to $2,620.33 per ounce in European trade, after falling more than 2 percent overnight to hit its lowest since Nov. 18. U.S. gold futures were down 0.8 percent at $2,632.39.
The dollar slipped today, after having surged to a two-year peak the previous day amid the Fed's shift in policy guidance.
The Federal Reserve on Wednesday cut the key lending rate by 25 basis point as expected but revised its projections to signal just two interest rate cuts next year compared to the four previously forecast, citing stubbornly high inflation.
The hawkish Fed outlook lifted the yield on benchmark U.S. Treasury yields to a seven-month high and the dollar to a two-year peak.
Fed Chair Jerome Powell's explicit - and repeated - references to the need for caution from here underscored investor concerns that Trump's fiscal, trade and tariff policies may fuel inflation and keep U.S. interest rates higher for longer.
The Bank of Japan (BOJ) kept its monetary policy settings unchanged today - an outcome expected by most economists.
The Bank of England's last meeting of the year is due later in the day.
The central bank is widely expected to hold rates at 4.75 percent after data showed a high rate of wage growth and inflation above the bank's 2 percent target.
Trading later in the day may be swayed by the release of U.S. reports on weekly jobless claims, existing home sales and Philadelphia Fed manufacturing. Final revision of Q3 GDP data is also awaited.
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