The precious metal slipped to its lowest level in more than a month on Thursday, as investors anticipate further interest rate hikes.

Spot gold was trading at $1,706.4 an ounce as of 11:08am (UAE time), the lowest since July 21, when prices were at a little over $1,700 an ounce.

According to analysts, rate increase expectations are impacting sentiment for the yellow metal.

"The re-pricing of US interest rate expectations over the last few months has weighed heavily on gold and will continue to do so for the forseeable future," said Nick Cawley, strategist at DailyFx.

US interest rates are expected to go higher over the coming months to 3.75% to 4%, compared to the current 2.25%-2.5%, Cawley said in a note.

Stock markets went into a tailspin last week after US Federal Reserve Chairman Jerome Powell said that interest rates must go up to tame inflation.

(Reporting by Cleofe Maceda; editing by Seban Scaria)