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Gold prices declined to a one-week low on Thursday, extending their fall a third consecutive session on profit taking after minutes from Federal Reserve's latest meeting indicated that interest rates would stay higher for longer.
Spot gold fell 0.7% to $2,361.76 per ounce as of 0939 GMT, after hitting its lowest since May 15 at $2,354.79 earlier in the session.
Bullion hit a record high of $2,449.89 on Monday but has fallen 3.6% since then. It still holds above its 21-day moving average of $2,348.6.
"The latest Fed minutes showed officials are in no rush to cut rates. In fact, several questioned if the higher-for-longer policy was restrictive enough," ANZ said in a note, adding that net long positions held by investors in gold were near their highest level in more than three years.
Traders' bets signalled growing doubts that the Fed will cut rates more than once in 2024.
Physical demand for gold has been holding up well since 2021, but high prices are likely to temper discretionary buying, ANZ said. Gold prices have risen 14.5% this year after a rally in March-May.
Imports to India, the world's second biggest gold consumer, could fall by nearly a fifth in 2024 as high prices spur consumers to exchange old jewellery for new items, according to the head of an industry body.
Spot silver fell 1.0% to $30.47. The recent rally in gold and copper prices drove it above a major level of $30 to an 11-year high earlier this week.
Platinum lost 0.5% to $1,029.90. Palladium fell below the crucial level of $1,000 and was last down 1.9% at $980.75.
(Reporting by Polina Devitt in London; additional reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Varun H K)