2021.09.1610:38:00UTC+00Gold Edges Lower On Firm Dollar

Gold prices fell on Thursday as treasury yields held an advance and the dollar traded firm ahead of next week's U.S. Federal Reserve meeting that should provide some clarity on the when the U.S. central bank would begin tapering its stimulus.

Spot gold dipped 0.8 percent to $1,779.12 per ounce, while U.S. gold futures were down 0.8 percent at $1,779.65.

While softer-than-expected U.S. inflation data released on Tuesday eased short-term expectations about tapering of asset purchases from the Federal Reserve, there are a lot of members in the FOMC who are in favor of commencing tapering this year.

The dollar index is resilient today, as concerns over the debt crisis at China Evergrande Group and Beijing's latest push to rein in private industries dampened risk sentiment.

The progress of U.S. President Joe Biden's economic agenda also remained in focus after the House of Representative's Ways and Means Committee approved the biggest tax hikes in a generation on Wednesday.

The committee approved $2.1 trillion in new levies that mostly focused on corporations and the wealthy.

On the data front, U.S. retail sales for August, business inventories data for July and weekly jobless claims for the week ended September 11 will be featured in the New York session.