Gold continued to slide lower on Thursday after being weakened by the strength of the US dollar and expectations of a big interest rate hike from the Federal Reserve (Fed).
In the Asian session, the yellow metal traded lower at $1,695 per ounce, while gold futures were gloomy at $1,705 per ounce.
Gold trading, which is considered an inflation hedge, fell sharply following the release of US consumer price data that showed inflation was still at a 40-year high last month.
The reported numbers have prompted investors to watch for a possible 100 basis point rate hike by the Fed at next week's FOMC meeting, although they see a greater chance of a 75 basis point increase.
Meanwhile, the US producer price index (PPI) released in the previous session showed a decline for the second month in a row due to the fall in gasoline prices.
However, the market did not show significant movement following the data which continued to see the US dollar remain strong at the highest level and gold fell lower.
