July 25 (Reuters) – Gold prices slipped on Monday, as an elevated dollar and prospects of an aggressive interest rate hike by the U.S. Federal Reserve this week dented demand for non-yielding bullion.
* Spot gold was down 0.2% at USD 1,722.84 per ounce, as of 0110 GMT, after rising to a more than one-week high on Friday.
* U.S. gold futures fell 0.5% to USD 1,718.70 per ounce.
* The dollar rose 0.1% against its rivals, making greenback-priced bullion more expensive for buyers holding other currencies.
* The U.S. central bank will conclude a two-day meeting on Wednesday, and markets are pricing in a 75-basis-point rate hike to combat soaring inflation.
* Although gold is seen as a hedge against inflation, rising interest rates increase the opportunity cost of holding bullion.
* U.S. Treasury Secretary Janet Yellen said on Sunday that the U.S. economic growth was slowing and she acknowledged the risk of a recession, but she said a downturn was not inevitable.
* Last week, the European Central Bank joined its global peers in the fight against soaring inflation as it raised interest rates by 50 bps.
* The European Central bank will raise its interest rates until inflation falls back to its 2% target, President Christine Lagarde said in an interview with Germany’s Funke Mediengruppe published on Friday.
* Spot silver was down 0.6% at USD 18.48 per ounce, platinum dipped 0.6% to USD 868.62, and palladium slipped 1.5% to USD 1,999.94.
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(Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu)