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Gold prices eased on Thursday as the dollar advanced, offsetting support from expectations that the U.S. Federal Reserve might slow its rate hike pace after November.
Spot gold fell 0.3% to $1,658.77 per ounce by 12:55 p.m GMT, while U.S. gold futures slipped 0.4% to $1,662.30.
Gold prices were being pressured by the solid rebound in the dollar index and some upbeat U.S. economic data, Jim Wyckoff, senior analyst at Kitco Metals, said in a note.
The dollar index was up 0.6%, making bullion less attractive for overseas buyers. Gold also competes with the dollar as a safe store of value.
Data showed U.S. economic growth rebounded more than expected in the third quarter amid a continued decline in the trade deficit. However, the Federal Reserve's aggressive interest rate increases curbed consumer spending.
Investors also took stock of another interest rate hike from the European Central Bank, which is raising borrowing costs at the fastest pace on record, with further hikes almost certain.
However, "the (Fed's) November meeting is already expected to deliver 75 basis-point, and December likely to do likewise," StoneX analyst Rhona O'Connell said, adding, "this talk of an early pivot is premature."
A majority of economists in the Oct. 17-24 Reuters poll forecast another 50 basis point hike in December. U.S. rate hikes increase the opportunity cost of holding zero-yielding bullion.
"For gold, $1,680-$1,700 is the range that should hold on the upside; only once that breaks can we see sustainable uptrends emerging," said Harshal Barot, a senior research consultant for South Asia at Metals Focus.
Spot silver shed 0.9% to $19.44 per ounce, platinum fell 0.3% to $949.03, while palladium slipped 0.5% to $1,953.79.
(Reporting by Arundhati Sarkar and Deep Vakil in Bengaluru; editing by David Evans)