Gold is currently at $1,083.60 (-0.53%). Expectations of an imminent rate hike in the U.S. continued weighing on the non-interest bearing precious metal, although the first rate increase in almost ten years may happen later this year, not in September when Fed policymakers meet next, because the latest data on the U.S. economy showed some weakness.

Demand in top consumers China and India remained weak. However South Koreans are on track to buy $860 million in gold this year as investors are concerned about stock markets.