 "gold")
By Arundhati Sarkar
(Reuters) - Gold rose on Thursday as the dollar pulled back slightly and some investors scooped up bargains after two sessions of heavy losses that plunged prices below the crucial $1,800 level.
Spot gold rose 0.4% to $1,744.69 per ounce by 1218 GMT. It has declined by more than $300 since the Federal Reserve began raising interest rates in March to tame unruly inflation, raising the opportunity cost of holding non-yielding bullion.
U.S. gold futures were up 0.3% at $1,742.10.
"There's a modest recovery (in gold) after a significant fall as bargain hunters come into the market. But direction of travel though is clear, that bears are in control and likely will push lower until physical buyers establish a price floor," said independent analyst Ross Norman.
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"Gold is also seeing some relief from a correction in the U.S. dollar, which appears to be topping out, although this is partially offset by modestly higher 10-year Treasury Yields." [USD/] [US/]
The dollar index eased 0.2%, making bullion more appealing to overseas buyers. [USD/]
Meanwhile, the European Central Bank policymakers debated flagging a larger interest rate hike for July, accounts of their June policy meeting showed.
The Fed minutes, on the other hand, revealed their concern that worsening inflation would erase faith in the central bank's ability to control inflation.
It is clear the FOMC committee members remain "highly focused on culling inflation, even if it was at the expense of a sharp economic slowdown," wrote Jeffrey Halley, senior market analyst, Asia Pacific, OANDA, in a note.
Traders now await Friday's labour market data, which can provide a fuller picture of the state of the world's biggest economy.
However, Credit Suisse said any indication the Fed is pursuing a more dovish approach, even as inflation remains elevated, will result in meaningfully higher gold prices.
Spot silver rose 1% to $19.37 per ounce, platinum jumped 2.3% to $875.12 and palladium climbed 2.5% to $1,952.42.
(Reporting by Arundhati Sarkar and Brijesh Patel in Bengaluru; Editing by Krishna Chandra Eluri and Aditya Soni)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
