22.02.201802:45:00UTC+00Gold Prices Flat, Weighed Down by U.S. Interest Rate Outlook

Gold prices held steady around a one-week low on Thursday, weighed down by minutes from the last U.S. Federal Reserve meeting that showed policymakers backed further interest rate hikes.

Spot gold was nearly unchanged at $1,323.95 per ounce, a day after it dropped to its lowest in a week at 1,322.20. The precious metal has declined 1.7 percent so far this week.

U.S. gold futures were 0.5 percent lower at $1,325.8 per ounce.

Spot gold is expected to test a support at $1,316 per ounce, a break below which could cause a loss to the next support at $1,303, according to Reuters technical analyst, Wang Tao.

Gold prices have dropped more than one percent this week as the dollar rebounded from three-year lows. On Tuesday, bullion lost 1.3 percent, the most on any day since Dec. 7, as a rise in U.S. yields lifted the dollar and 10-year U.S. Treasury yields hovered near a four-year peak.

Interest in physical gold has been muted this week during the Lunar New Year holiday across much of Asia, including major consumer China.

Among other precious metals, silver dropped 0.4 percent to $16.43 an ounce, while palladium fell 0.1 percent to $1,019.25 per ounce and platinum rose 0.2 percent at $989.40 after touching a more than one-week low of $983.