Gold down

Bengaluru

Gold slipped to its lowest in over three weeks on Thursday as a stronger dollar and increasing prospects of a December rate hike by the Federal Reserve curbed appetite for the metal.

Spot gold was down 0.2 percent at $1,298.06 an ounce by 0634 GMT, after earlier touching its lowest since late August at $1,294.41.

U.S. gold futures for December delivery dropped nearly 1.2 percent to $1,301.20 an ounce.

The U.S. dollar rose and bond yields jumped to their highest levels in six weeks on Wednesday after the Federal Reserve announced a plan to start shrinking its balance sheet in October and signalled one more rate hike later this year.

The dollar on Thursday extended gains and rose 0.2 percent versus the yen .

It was steady against a basket of currencies.