Gold resumed its ease from the psychological level of $1300, extending its drop for a fourth straight session on Wednesday, as the U.S. dollar continued to rebound from its lowest level since January 2015.
The precious metal hit a low of $1274.21 an ounce, while currently trading around $1277.03 from the opening at $1279.43.
The dollar index, which tracks the green currency’s movements versus a basket of six major currencies, soared for a third straight session after mixed U.S. economic data on Wednesday.
The dollar is currently trading around 93.52, while it continued its rebound from 18-month lows versus the yen to trade around 107.28.
Data released yesterday showed narrowing trade deficit and rise in services and factory orders, while private sector employment dropped.
The U.S. could hike interest rates twice this year, Atlanta Fed President Dennis Lockhart said on Tuesday.
San Francisco Fed President John Williams said he would endorse an interest-rate increase in June on condition that the economy continues to show progress, especially inflation and jobs.
Later in the day, Federal Reserve Bank of St. Louis President James Bullard will speak at Santa Barbara County’s Economic Summit.
Asian shares slipped for a seventh session on Thursday after China’s services PMI showed an ease in expansion to 51.8 in April from 52.2 in March.
