GOLD prices were flat on Wednesday (Aug 16), a day after breaching the key US$1,900 support level on strong US consumer spending data fuelling speculation that the Federal Reserve was not done with its interest rate hiking cycle.

Spot gold was flat at US$1,900.90 per ounce by 0123 GMT, while US gold futures eased 0.1 per cent to US$1,933.

Gold on Tuesday dropped to as low as US$1,895.50 an ounce, its weakest level since end-June, as benchmark 10-year US Treasury yields hit an almost 10-month high, making them more attractive than non-interest bearing bullion.

US retail sales increased more than expected in July, suggesting the economy continued to expand early in the third quarter while keeping a recession at bay.

Later in the day, investors will scan minutes from the Fed’s July policy meeting to gauge its upcoming rate strategy.

Minneapolis Fed president Neel Kashkari on Tuesday said that while the US central bank has made some progress in its inflation fight, interest rates may still need to go higher to finish the job.

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Basic wages in Britain hit a record growth rate, adding to worries for the Bank of England about long-term inflation pressures even after 14 back-to-back rate hikes.

Global hedge funds are “aggressively” selling Chinese stocks amid heightened concerns over the country’s property sector and a weak batch of economic data, a Goldman Sachs report showed.

Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, extended declines to hit their lowest level since January 2020 at 894.43 metric tons on Tuesday.

Spot silver was up 0.1 per cent at US$22.52 an ounce and platinum down 0.1 per cent to US$887.81. Palladium gained 0.2 per cent to US$1,237.40. REUTERS