Dollar steadies, gold prices climb

After the dollar paused its rally, gold prices went up on Thursday from nine-month lows touched in the previous session, which helped alleviate pressure on the dollar-priced bullion.

Spot gold fell 0.2% to $1,741. By 0100 GMT, the 87 per ounce was reached. US gold futures rose 0.2% to $1,739. The dollar was flat near the new 20 year highs reached on Wednesday, easing some pressure on gold.

In the previous session, the dollar's strength dragged gold as much as 1.9% lower, to its lowest level since Sept. 30 at $1,731. Wall Street moved upward while oil fell on Wednesday as investors juggled concerns over inflation versus a recession after Federal Reserve minutes showed officials rallied around a large rate hike at their June meeting.

A deteriorating inflation situation and concern about the Federal Reserve's power to make it better prompted US central bank officials to rally around an outsized interest rate increase and a firm restatement of their intent to control prices, minutes of the June 14 -- 15 policy meeting showed.

The outlook for the global economy has darkened significantly since April, but she could not rule out a possible global recession next year, given the elevated risks, said the head of the International Monetary Fund IMF on Wednesday.

The US 10-year Treasury yield went up on Thursday after gains in the previous session.

Higher interest rates and bond yields lift the opportunity cost of holding non-yielding bullion.

Spot silver decreased by 0.1% to $19.20 per ounce, while platinum fell 0.3% to $853.25 and palladium gained 1.3% to $1,929.