23.11.201702:04:00UTC+00Gold Prices Drop Amid Fed Inflation Concerns

Gold prices edged down on Thursday, as investors took profits following gains of almost one percent in the session earlier on weaker U.S. economic data as well as concerns over lower inflation.

Spot gold fell 0.2 percent at $1,290.05 an ounce.

U.S. gold futures for December delivery slipped 0.2 percent to $1,289.80.

Some members expressed concern over the inflation outlook and emphasized they would be looking at upcoming economic data before deciding the timing of future rate hikes.

Fed Chair Janet Yellen stuck by her prediction that U.S. inflation will soon rebound but also offered a warning as she is “very uncertain” about this and is open to the possibility that prices could remain low for years to come.

Investors were eager to own gold to hedge against risks including a decline in global stock markets from current record highs, Saxo Bank analyst Ole Hansen said, expecting the precious metal to increase to $1,325 by the end of the year.

Spot gold may test a support at $1,283 per ounce as it failed to break resistance at $1,297, according to Reuters technical analyst Wang Tao.

Among other precious metals, silver fell 0.4 percent at $17.08 per ounce, platinum dropped 0.9 percent to $929.95 per ounce, while palladium rose 0.1 percent at $1,004.10 per ounce.