Gold prices fell on Wednesday as the dollar rebounded from recent losses, and investors looked ahead to the monetary policy meetings of the European Central Bank and the Bank of Japan.
A positive trend on Wall Street weighed as well on the yellow metal.
The European Central Bank is widely expected to hike interest rates by 50 basis points on Thursday. A section of analysts expect the hike to be sharper, at 75 basis points.
The Bank of Japan is widely expected to keep monetary stimulus unchanged on Thursday to avoid deflation.
Bank of England governor Andrew Bailey has raised the possibility of increasing interest rates by half a percentage points in early August.
The dollar index, which dropped to 106.39 in the Asian session, recovered subsequently and rallied to 107.15, gaining nearly 0.5% over previous closing level.
Gold futures for August ended lower by $10.50 or about 0.6% at 1,700.20 an ounce, after moving in a somewhat tight band.
Silver futures for September ended down by $0.045 at $18.668 an ounce, while Copper futures for September settled higher by $0.0340 at $3.3250 per pound.
On the economic front, a report released by the National Association of Realtors showed existing home sales tumbled by much more than expected in the month of June.
NAR said existing home sales plunged by 5.4% to an annual rate of 5.12 million in June after slumping by 3.4% to an annual rate of 5.41 million in May. Economists had expected existing home sales to decrease by 0.6% to a rate of 5.38 million.
Existing home sales declined for the fifth consecutive month, falling to their lowest level since June of 2020.
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