Nov 14 (Reuters) - Gold prices fell over 1% on Thursday, hitting a two-month low, pressured by a strong U.S. dollar, while investors awaited U.S. economic data later in the day for further clues on the Federal Reserve's monetary path.
Spot gold was down 1.1% at $2,546.70 per ounce as of 1119 GMT, declining for a fifth straight session, after hitting its lowest since Sept. 12 earlier in the session.
U.S. gold futures were down 1.4% at $2,551.60.
"Gold bulls have wilted in the face of the rampant dollar since Trump's election win," said Exinity Group Chief Market Analyst Han Tan.
The U.S. dollar (.DXY), opens new tab rose to a one-year high, making gold more expensive for overseas buyers. Treasury yields also rose, adding additional pressure.
Markets are dismissing gold as a hedge against inflation, despite Trump's policies potentially raising U.S. inflation, Tan said.
Economists believe Trump's tariff plans would stoke inflation, potentially slowing the Fed's rate easing cycle.
Investors await the Producer Price Index (PPI) data for October, set for release at 13:30 GMT, which is expected to rise 0.2% on a monthly basis.
The market also looked ahead to remarks from Fed Chair Jerome Powell due later in the day.
Data on Wednesday showed slower progress toward low inflation since mid-year, which could result in fewer interest rate cuts from the Federal Reserve next year.
Markets see an 82% chance of a 25 basis points rate cut by the Fed in December, according to the CME Fedwatch tool, opens new tab, which would mark the third reduction this year.
"Prices have turned bearish, signalling a likely move to lower levels for gold. The next key level to watch is $2,555 and if the decline continues, we may see prices testing the $2,520 level," said Brian Lan, managing director at Singapore-based dealer GoldSilver Central.
Spot silver fell 1.8% to $29.81 per ounce, its lowest level since Sept. 12. Platinum fell 0.5% to $932.95. Palladium lost 0.9% to $925.25.
Reporting by Daksh Grover in Bengaluru; Editing by Varun H K and Vijay Kishore
