Gold prices lingered near a Mid-March low on Thursday, dragged down by a stronger dollar and hawkish comments from US Federal Reserve Chair Jerome Powell.
Spot gold fell 0.2 per cent to $1,903.19 per ounce by 0340 GMT, near a mid-March low hit on Wednesday.
US gold futures fell 0.5 per cent to $1,911.70.
The dollar index was higher, making gold expensive for holders of other currencies.
Powell's hawkish remarks reinforced interest rates going higher for longer, with a higher opportunity cost of holding gold dimming the appeal of gold, said OCBC FX strategist Christopher Wong.
Powell suggested another two rate hikes to the Fed funds target rate were likely, and he did not see inflation abating to the 2 per cent target until 2025.
Investors now see an 81 per cent chance of a 25-basis point rate hike in July before rates holding steady for the remainder of the year, according to CME's Fedwatch tool.
High interest rates discourage investing in non-yielding gold.
Market participants are now awaiting initial US jobless claims and final first-quarter GDP numbers due later in the day, along with personal consumption expenditures (PCE) data for May on Friday.
Analysts polled by Reuters expect the core PCE, the Fed's favored inflation gauge, to be 4.7 per cent on a year-over-year basis, well above the Fed's 2 per cent target.
Asian shares were subdued on the premise of higher interest rates, while the Japanese yen and the Chinese yuan struggled to lift from lows amid fears of official intervention.
China's factory activity likely contracted for a third straight month in June, albeit at a marginally slower pace, a Reuters poll showed.
Spot silver was little changes at $22.71 per ounce while platinum rose 0.2 per cent to $912.52.
Palladium rose 0.6 per cent to $1,256.83 per ounce, after hitting a 4-1/2-year low in the previous session.
Published 29 June 2023, 05:00 IST