* Gold has lost more than $380 since March * Markets weighing risk of 100 bps hike next week -analyst * U.S. August retail sales data due at 1230 GMT (Updates prices) By Arundhati Sarkar Sept 15 (Reuters) - Gold prices fell to a near two-month low on Thursday, trading below the $1,700 mark once again, as increased prospects of more aggressive rate hikes by the Federal Reserve continue to weigh. Spot gold fell 0.6% to $1,685.79 per ounce by 1209 GMT, after touching its lowest since July 21. U.S. gold futures were down 0.8% to $1,694.80. "The gold market has clearly priced in a more aggressive U.S. Federal Reserve ahead of next week's meeting, reflecting the central bank's determination to fight inflation," said Carsten Menke, Head Next Generation Research at Julius Baer. While the consensus is for a 75-basis-point (bps) hike, some are calling for a 100 bps increase which is partly reflected in the gold market, Menke said, adding that a 75 bps hike could thus come as a positive surprise for the gold market. The dollar index held near a two-decade peak scaled last week, as a surprise rise in U.S. August inflation boosted bets for an even more aggressive Fed monetary policy. A stronger dollar makes greenback-priced gold expensive for overseas buyers. Non-yielding gold, which is highly sensitive to rising U.S. interest rates as it stands to lose out to other assets that pay interest, has declined more than $380 since its March peak, when the Fed raised rates for the first time since 2018. Meanwhile, International Monetary Fund chief Kristalina Georgieva said on Wednesday central bankers must be persistent in fighting broad-based inflation. "The higher CPI print is the main driver of the weaker gold price," said UBS analyst Giovanni Staunovo, adding "higher interest rates are likely triggering outflows from gold holdings." Traders will now be watching U.S. retail sales and industrial production data later in the day. Spot silver fell 1.6% to $19.3663 per ounce, while platinum rose 0.8% to $913.00. Palladium shed 0.4% to $2,155.97. (Reporting by Arundhati Sarkar in Bengaluru; editing by Kirsten Donovan and Jason Neely)
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