Bengaluru — Gold dropped to its lowest price in nearly 10 months on Thursday as the dollar held firm around nine-and-a-half-month highs against the yen, boosted by inflation expectations, while growing odds of a US interest rate hike also added pressure. Spot gold was down 0.4% at $1,168.60/oz by 2.36am GMT. The metal hit its lowest since February 5 at $1,163.45 earlier. US gold futures dropped 0.3% at $1,167.20/oz. The US dollar was broadly firm, hitting nine-and-a-half-month highs against the yen, as oil prices surged after oil cartel Opec agreed to output cuts — lifting inflation expectations and US bond yields. "Gold has been sensitive to the US monetary policy and dollar movements," said Mark To, head of research at Hong Kong’s Wing Fung Financial Group. "Inflation as well as pace of interest rate hike expectations among the investors are increasing along with the opportunity cost of holding gold. "That’s why gold is coming under selling pressure," To said. "The trading range i...
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