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Gold prices stabilized on Wednesday after rising to record levels last week, as safe-haven demand fueled by geopolitical risks in the Middle East partly offset the impact of pressure from a stronger dollar and US Treasury yields.
Gold settled in spot trading at $2,381.68 per ounce by 0337 GMT, after hitting an all-time high of $2,431.29 on Friday. US gold futures fell 0.4 percent to $2,397.70.
The dollar stabilized near its five-month peak, making the yellow metal priced in the US currency less attractive to holders of other currencies. Benchmark 10-year US Treasury bond yields rose to 4.6591 percent, hovering near the five-month high recorded in the previous session.
He added that any escalation in geopolitical tension could pave the way for prices to once again test their highest levels ever.
Senior Federal Reserve officials, including Chairman Jerome Powell, declined to provide any guidance on when interest rates might be cut, saying instead that tightening monetary policy should continue for a longer period.
Data issued by the United States raised questions about the possibilities of lowering interest rates this year, as many global brokerage firms revised their expectations for the US Central Bank to begin cutting interest rates to September instead of June.
The market expects a 68 percent chance of an interest rate cut in September, according to the CME Group’s FedWatch tool.
Low interest rates enhance the attractiveness of holding non-yielding gold.
As for other precious metals, silver rose in spot trading by 0.3 percent to $28.16 per ounce. Platinum fell 0.3 percent to $953.75, and palladium rose 0.4 percent to $1,017.58.
