Gold prices fell on Thursday, as the dollar ticked higher ahead of US Federal Reserve Chair Jerome Powell's speech this week, with investors awaiting cues on tapering of economic stimulus.

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Spot gold fell 0.3 percent to USD 1,784.82 per ounce by 0705 GMT, while US gold futures fell 0.3percent to USD 1,785.00.

The dollar index inched 0.1 percent higher, weighing on the greenback-denominated bullion.

"Some investors want to have a little bit of protection in the event that we have a hawkish surprise from Jackson Hole," said Edward Moya, senior market analyst at OANDA, adding that gold could consolidate on the downside till the symposium.

Powell is scheduled to speak at the Fed's annual economic symposium at Jackson Hole, Wyoming, on Friday.

While a growing number of Fed officials have been actively discussing the likelihood of dialling back bond-buying program, the rise in coronavirus' Delta variant has cast a shade of uncertainty over that view.

"For gold, any signs that they could be more patient amid the ongoing pandemic should see prices well supported. However, any gains in real yields could dampen investor demand," ANZ Research said in a note.

Gold is viewed as a hedge against inflation and currency debasement. The Fed's tapering would tackle both those conditions thereby diminishing gold's appeal.

"Few more corrections are in the cards for gold prices," said Hareesh V., head of commodity research at Geojit Financial Services.

The situation with coronavirus is not as critical as last year and safe haven demand is likely to be lacklustre in the near term, with investors focusing on riskier assets, he added.

Indicative of sentiment, holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell to its lowest level since April 2020.

Elsewhere, silver and platinum fell 0.9percent to USD 23.64 and USD 987.65 per ounce, respectively.

Palladium slipped 1.1 percent to USD 2,402.86.

First Published:Aug 26, 2021 10:07 AM IST