Gold futures were headed lower Thursday morning, jeopardizing a multiday string of gains for the precious metal.
April gold GCJ22, -0.41% GC00, -0.41% traded $ 9.20, or 0.5%, lower at $ 1,801.10 an ounce, nearly erasing a similar gain from the previous session, which helped to mark the highest settlement for a most-active contract since Jan. 26, FactSet data show. Bullion has settled higher for three straight sessions.
Economists at Credit Suisse are forecasting that the yellow precious metal will retest the area of around $ 1,691 if it breaks under $ 1,759.
Trading for gold on the session came as the Bank of England on Thursday announced its second consecutive interest-rate increase, marking the first time it is completed back-to-back hikes since 2004.
The central bank also said it would stop reinvesting the proceeds of its portfolio of £875 billion in government bonds, but won’t begin selling them until rates have climbed to at least 1%.
That decision came ahead of a policy update from the European Central Bank, where the institution held its policy mix in place but reaffirmed plans to scaling back its bond buying program soon.
Last week, the U.S. Federal Reserve signaled that it could start lifting benchmark interest rates as soon as March and continue to raise rates as it combats inflation pressures.
Precious metals have been mostly stuck in a range, with traders anticipating a regime of higher rates buffeting precious metals. However, uncertainty about the effectiveness of policy makers in tackling inflation and fears of a recession in parts of the world have helped to support bullion buying.
Meanwhile, March silver SIH22, -1.64% was trading 38 cents, or 1.7%, at $ 22.33 an ounce, following a 0.5% gain on Wednesday.