Gold retreats as traders assess Fed's recap on latest rate hike

Gold prices retreated at settlement today, Feb. 9, weighed down by prospects of more interest rate hikes by the US Federal Reserve.

New York Fed President John Williams indicated that the US central bank may have to make higher-than-expected interest rate increases if financial conditions continue to deteriorate.

Along the same lines, Atlanta Fed President Raphael Bostic said January's robust US jobs report could push policymakers to lift interest rates beyond previous estimates.

Today's data showed that the number of initial jobless claims in the US advanced by 13,000 to 196,000 applications in the week ended Feb. 4.

Also today, gold for April delivery closed in the red, shedding 0.7%, or $12.20, to $1,878.50 an ounce.

Similarly, the US dollar index, which gauges the greenback's strength against a basket of six currencies, edged 0.3% lower to 103.135 points at 10:06 pm Makkah time.