<p>Gold prices fell on Wednesday as the dollar recovered slightly, piling pressure on greenback-priced bullion along with firm Treasury yields and an aggressive inflation stance by the US Federal Reserve chief.</p>.<p>Spot gold dropped 0.4 per cent to $1,808.08 per ounce, by 0329 GMT. US gold futures slipped 0.6 per cent to $1,807.10.</p>.<p>Gold has been consolidating since the end of last week but the overall direction is down, towards about $1,750, said Ilya Spivak, a currency strategist at DailyFX.</p>.<p>"The question is when do we find fresh momentum to take us there?" Spivak said.</p>.<p>The dollar edged higher after a three-session slide, increasing the appeal of gold for investors holding other currencies.</p>.<p>"Gold's very focused on rates and the outlook for monetary policy, especially in the US," Spivak said, adding that the dollar was not done rallying.</p>.<p>Fed Chair Jerome Powell on Tuesday pledged that the US central bank would ratchet interest rates as high as needed to kill a surge in inflation that he said threatened the foundation of the economy. Benchmark US 10-year Treasury yields steadied after a sharp rise in the previous session, hurting demand for zero-yield gold. The Fed has raised its benchmark policy rate by three-quarters of a percentage point this year, and is on track to increase it again in half-percentage-point increments at its next two meetings in June and July.</p>.<p>Although seen as an inflation hedge, bullion is sensitive to rising US short-term interest rates and bond yields, which increase the opportunity cost of holding it. Spot silver fell 0.7 per cent to $21.46 per ounce, platinum dipped 0.6 per cent to $945.37, and palladium eased 1 per cent to $2,031.54.</p>
<p>Gold prices fell on Wednesday as the dollar recovered slightly, piling pressure on greenback-priced bullion along with firm Treasury yields and an aggressive inflation stance by the US Federal Reserve chief.</p>.<p>Spot gold dropped 0.4 per cent to $1,808.08 per ounce, by 0329 GMT. US gold futures slipped 0.6 per cent to $1,807.10.</p>.<p>Gold has been consolidating since the end of last week but the overall direction is down, towards about $1,750, said Ilya Spivak, a currency strategist at DailyFX.</p>.<p>"The question is when do we find fresh momentum to take us there?" Spivak said.</p>.<p>The dollar edged higher after a three-session slide, increasing the appeal of gold for investors holding other currencies.</p>.<p>"Gold's very focused on rates and the outlook for monetary policy, especially in the US," Spivak said, adding that the dollar was not done rallying.</p>.<p>Fed Chair Jerome Powell on Tuesday pledged that the US central bank would ratchet interest rates as high as needed to kill a surge in inflation that he said threatened the foundation of the economy. Benchmark US 10-year Treasury yields steadied after a sharp rise in the previous session, hurting demand for zero-yield gold. The Fed has raised its benchmark policy rate by three-quarters of a percentage point this year, and is on track to increase it again in half-percentage-point increments at its next two meetings in June and July.</p>.<p>Although seen as an inflation hedge, bullion is sensitive to rising US short-term interest rates and bond yields, which increase the opportunity cost of holding it. Spot silver fell 0.7 per cent to $21.46 per ounce, platinum dipped 0.6 per cent to $945.37, and palladium eased 1 per cent to $2,031.54.</p>