Gold dips as dollar climbs, investors await economic data

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Gold prices eased on Thursday as the dollar edged up, while investors await economic data amid expectations the U.S. Federal Reserve might slow its rate hike pace after November.

Spot gold inched 0.1% lower to $1,662.79 per ounce by 0952 GMT, while U.S. gold futures also fell 0.1% to $1,666.70.

"Gold does look as if it's undergoing an underlying change in sentiment on the back of economic uncertainty and here, too, it is what the European Central Bank says that will count rather than what it does," StoneX analyst Rhona O'Connell said.

The ECB has already raised rates at the fastest pace on record, and is expected to raise again on Thursday to fight off the surge in inflation

However, "the (Fed's) November meeting is already expected to deliver 75 basis-point, and December likely to do likewise," O'Connell said, adding, "this talk of an early pivot is premature."

A majority of economists in the Oct. 17-24 Reuters poll forecast another 50 basis point hike in December. U.S. rate hikes increase the opportunity cost of holding zero-yielding bullion.

Investors will keep a close eye on the ECB's policy decision due later in the day, followed by advance GDP estimates by the U.S. Commerce Department.

Meanwhile, the dollar index ticked up 0.3% making bullion less attractive for overseas buyers. Gold also competes with the dollar as a safe store of value. [USD/]

"For gold, $1,680-$1,700 is the range that should hold on the upside; only once that breaks can we see sustainable uptrends emerging," said Harshal Barot, a senior research consultant for South Asia at Metals Focus.

Spot silver fell 1.5% to $19.32 per ounce, platinum slipped 0.8% to $943.43, while palladium was little changed at $1,962.41.