Gold prices fell on Thursday to hit over one-year lows as investors braced for the interest-rate decision from the European Central bank. A 25-bps hike is already priced in by markets.
The U.S. dollar ticked higher, making the bullion more expensive for those holding other currencies.
Spot gold dropped 0.8 percent to $1,683.20 per ounce, while U.S. gold futures were down 1.1 percent at $1,680.85.
The ECB is expected to raise interest rates for the first time in 11 years today, joining peers around the world in confronting a historic spike in inflation.
A sell-off in Italian financial markets intensified after Italian Prime Minister Mario Draghi offered his resignation to the president, in a move that will raise the prospect of snap elections as soon as early October.
Trading later in the day may impacted by reaction to U.S. reports on weekly jobless claims, Philadelphia-area manufacturing activity and leading U.S. economic indicators.
