Gold prices fell on Wednesday and were on track to post their longest streak of monthly losses since 2018 as traders anticipated more interest rate increases by central banks to combat red-hot inflation.

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Spot gold fell 0.8 percent to $1,710.70 an ounce by 0956 GMT. Bullion has lost about 3 percent so far in August, set for its fifth straight month of declines.

U.S. gold futures dipped 0.8 percent to $1,722.90.

Expect gold to fall to $1,600 by year-end as Federal Reserve chair Jerome Powell's determination to bring down inflation through tighter monetary policy will result in higher U.S. real rates and a stronger dollar, said UBS analyst Giovanni Staunovo.

Inflation has hit multi-decade highs in many parts of the world, forcing central banks to tighten monetary policy. Gold is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-yielding bullion.

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"The Fed does not have intentions to significantly ease in the near term," said DailyFX currency strategist Ilya Spivak. "Their focus is on inflation."

Traders will look at the U.S. private payrolls report due at 1215 GMT for further clues on the resilience of the American labour market.

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"(But) don't expect the data to materially affect the direction of the gold price, although a strong number could drive it lower," said Michael Hewson, chief market analyst at CMC Markets UK.

Spot silver fell 2.5 percent to $18.03 an ounce and was set for its biggest monthly drop since September 2020.

Platinum slipped 0.7 percent to $841.40 and was headed for a more than 6 percent drop over the month.

Palladium, meanwhile, dipped 0.4 percent to $2,078.81.

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