2021.10.0611:04:00UTC+00Gold Dips On Dollar Strength

Gold prices fell on Wednesday and the U.S. dollar firmed against its major counterparts as treasury yields rose amid inflation worries following rising costs for crude oil and natural gas.

Spot gold dipped 0.6 percent to $1,749.67 per ounce, while U.S. gold futures were down 0.6 percent at $1,750.55.

Equity markets across Asia and Europe fell as investors weighed the outlook for economic growth against the backdrop of soaring energy prices, the debt crises of Chinese property developers and the impasse in the U.S. Congress on raising the debt ceiling.

It is feared that rising inflationary pressures may force central banks to tighten policy sooner than expected.

Earlier today, New Zealand's central bank hiked interest rates for the first time in seven years and signaled further tightening so as to maintain low inflation and support maximum sustainable employment.

In Europe, the Romania central bank hiked rates on Tuesday and Poland is expected to follow suit on Thursday.

All eyes are on U.S. jobs data due later this week, which is expected to show a continued improvement in the labor market.

The nonfarm payrolls data is seen as crucial in influencing the timing of the start of winding down the QE program.