Spot gold rose 0.2% to $1,952.74 an ounce, recovering from a nearly two-week low hit earlier.
“We are getting closer to a buying opportunity in gold … we had a nice little corrective selling and here is an opportunity to go higher”said Daniel Pavilonis, senior market strategist at RJO Futures.
On Tuesday, gold prices fell as much as 1.8%, as comments from US central bank officials, including the president of the St Louis Federal Reserve, James Bullard, pushed the dollar and 10-year Treasury yields to multi-year highs.
Although gold is considered a hedge against inflation, rising rates increase the opportunity cost of holding bullion, which does not earn interest.
San Francisco Fed President Mary Daly said Wednesday that she expects inflation to start to ease and reach the 2% target in five years.
Spot silver fell 0.1% to $25.14 an ounce; platinum lost 0.5% to $986.00; and palladium continued its volatile streak and rose to $2,473.12after having climbed up to 4.8% in the session.
Market focus remains on a likely drop in supply of the metal used in vehicle exhaust to curb emissions from key producer Russia.
Source: Ambito
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