As investors face the probability of further interest rate hikes by central banks to contain inflationary pressures, gold prices declined on Thursday, after reaching a low of more than two weeks in the previous session.

Spot gold was down 0.1% to $1,992.23 per ounce at 0332 GMT. U.S. gold futures fell 0.2% to $2,004.00. Matt Simpson, senior market analyst at City Index believes that “despite gold breaking below $1,980 yesterday, investors were quick to seize on the rapid reduction and bring spot prices back above this key support level.” But they are careful that members of the US Federal Reserve remain optimistic until the blackout period on Saturday, before the next Fed meeting

Cash lost 0.5% to $25.12 per ounce, platinum fell 0.4% to $1,085.81, and palladium fell 0.5% to $1,607.49.