PRECIOUS-Gold slides to 1-week low on elevated US dollar, yields

Shafaq News/ Gold prices extended losses to hit their lowest level in a week on Wednesday as U.S. Treasury yields and the dollar strengthened on expectations that interest rates are likely to remain high.

Spot gold XAU= was subdued at $1,925.70 per ounce by 0313 GMT, after posting its biggest one-day loss since Aug. 1 on Tuesday. U.S. gold futures GCcv1 dipped 0.1% to $1,951.

The U.S. dollar hovered near six-month highs hit on Tuesday, while 10-year bond yields were at over one-week highs as markets weighed cues on interest rates. USD/US/

A stronger dollar makes gold expensive for other currency holders.

Federal Reserve Governor Christopher Waller said the latest round of economic data was giving the U.S. central bank space to see if it needs to raise interest rates again.

"Fed's guidance for policymaking to be on a meeting-by-meeting basis has kept bets of additional tightening in November/December alive," said Yeap Jun Rong, a market strategist at IG. FED/WATCH

Additionally, a jump in oil prices does not provide much reassurance for the global inflation outlook and further convinced investors of a high-for-longer rate view, he said, adding that the U.S. CPI data next week will determine Fed's rate outlook over the coming months. O/R

Higher U.S. interest rates and Treasury bond yields raise the opportunity cost of holding gold, which does not earn any interest.

A raft of surveys on Tuesday showed global business activity largely slowed further last month, spurring demand for U.S. dollar as a safe haven rather than gold.

SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.1% on Tuesday. GOL/ETF

Elsewhere, spot silver XAG= was steady at $23.53 per ounce, platinum XPT= dipped 0.3% to $923.16 and palladium XPD= was up 0.1% at $1,213.46.

(Reuters)