BENGALURU: Gold prices declined to a one-week low on Thursday, extending their fall for a third consecutive session on profit-taking after minutes from the US Federal Reserve’s latest meeting indicated that interest rates would stay higher for longer.

Spot gold fell 0.9% to $2,356.29 per ounce as of 1355 GMT, after hitting its lowest since May 14 at $2,351 earlier in the session. The non-yielding bullion hit a record high of $2,449.89 on Monday and is up 14% so far this year.

The market has also been concerned that high gold prices could affect purchases by central banks, which were active buyers in 2022-2023, as well as demand from Chinese investors. “We expect them to continue with strong purchases on any price dips, and we don’t expect the downside to gold prices to be pronounced,” said Nitesh Shah, commodity strategist at WisdomTree.

Gold could see the next level of support at $2,300, and signals that the Fed is ready to cut interest rates would be the next major catalyst for its price gain, he added.

Meanwhile, imports to India, the world’s second-biggest gold consumer, could fall by nearly a fifth in 2024 as high prices spur consumers to exchange old jewellery for new items, according to an industry body.

Spot silver fell 0.6% to $30.57. The recent rally in gold and copper prices drove it to $32.5, an 11-year high, earlier this week. Platinum was down 0.2% at $1,033.44. The metal is up 11% so far this month after a wave of forecasts of the second year of structural market deficit.

Providing further support, platinum’s technical chart formed a golden cross - a bullish pattern - in late April when its short-term moving average pierced through a long-term moving average, Shah said.

Palladium lost 1.7% to $982.38 under pressure from future market share growth of electric vehicles and despite structural supply deficit.