Gold prices steadied on Wednesday ahead of key U.S. inflation data this week that could provide more clarity on when the Federal Reserve will cut interest rates for the first time this year.
Spot gold was flat at $2,319.95 an ounce by 0337 GMT, while U.S. gold futures were little changed at $2,331.30.
The dollar rose 0.1% against rival currencies, making gold more expensive for holders of other currencies, while benchmark 10-year bond yields also rose.
“The rise in Treasury yields and the US dollar last night on the back of the Fed’s hawkish comments has led to some weakness in gold prices this morning,” said Ye Jun Rong, market strategist at IG.
U.S. first-quarter GDP estimates are due Thursday, and the personal consumption expenditures price index report is due Friday.
John Runge said the risks come with any sudden spike in inflation, which could lead to more uncertainty about the Fed's policies and could result in further declines for the yellow metal.
Higher interest rates increase the opportunity cost of holding non-yielding gold.
As for other precious metals, silver rose in spot transactions by 0.1% to $28.94, platinum increased by 0.8% to $989.70, while palladium fell by 0.5% to $943.49.
