Gold prices dropped on Thursday as the dollar strengthened against most major currencies, with traders anticipating remarks from Fed Chair Jerome Powell.
The minutes from the Fed’s July meeting reveal that most policymakers support a potential interest rate cut in September, contingent on favorable economic data.
Market odds currently indicate a 100% probability of a Fed rate cut in September, though there is uncertainty regarding the magnitude of the cut.
Investors are also eagerly awaiting Fed Chair Powell's upcoming speech at Jackson Hole for further insights into future monetary policy direction.
Earlier U.S. economic data showed a rise in unemployment claims by 4,000 to 232,000 for the week ending August 17.
The U.S. composite PMI slightly decreased from 54.3 to 54.1 in August, marking a four-month low.
Unexpectedly, the services PMI increased to 55.2 in August from 55 in July, while the manufacturing PMI dropped to 48 in August from 49.6, falling short of the 49.5 estimate.
Meanwhile, the dollar index climbed 0.5% to 101.5 by 20:40 GMT, reaching a session high of 101.6 and a low of 101.09.
As of 20:41 GMT, spot gold prices had declined by 1.2% to $2,517 an ounce.
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