WASHINGTON (dpa-AFX) - Gold traded slightly lower on Thursday as the dollar climbed, scaling a more than six-week high versus the yen after Japanese Prime Minister Shigeru Ishiba said the country is not in an environment for an additional rate increase.
Dovish comments from Bank of England Governor Andrew Bailey and growing expectations that the U.S. Federal Reserve will not rush to cut interest rates also prompted a surge in demand for the U.S. dollar.
The British pound weakened against other major currencies after Bank of England Governor Andrew Bailey reportedly hinted at 'more aggressive' path for cutting interest rates if inflation news stays positive.
In a wide-ranging interview with the Guardian, Bailey held out the prospect of the Bank becoming a 'bit more aggressive' with interest-rate cuts.
Spot gold dipped half a percent to $2,645.73 per ounce in European trading, while U.S. gold futures were down 0.2 percent at $2,665.10.
Trading later in the day may be impacted by reaction to the latest U.S. economic data, including reports on weekly jobless claims, service sector activity and factory orders.
The U.S. Labour Department is due to release its more closely watched report on employment for September on Friday.
Economists currently expect the report to show employment climbed by 140,000 jobs in September after an increase of 142,000 jobs in August. The unemployment rate is expected to hold at 4.2 percent.
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