<p>Gold prices dipped on Wednesday as a stronger dollar and Federal Reserve Chair Jerome Powell's hawkish comments to shore up US interest rate increases dimmed non-yielding bullion's appeal.</p>.<p>Spot gold was down 0.2 per cent at $1,810.62 per ounce by 1233 GMT, erasing small gains from earlier in the session that seemed to have been driven by limited safe-haven inflows amid growth risks tied to soaring inflation.</p>.<p>US gold futures fell 0.6 per cent to $1,807.70.</p>.<p>Gold's small uptick soon lost steam because higher US interest rates discourage investment in gold, which does not bear any interest despite being considered a hedge against soaring prices.</p>.<p>"The Fed has been key to the dollar strengthening and gold tumbling. And there's no letting up on their hawkish position," said Craig Erlam, senior market analyst at OANDA.</p>.<p>There's not much appetite for gold, and higher yields could continue to weigh on the metal, Erlam added.</p>.<p>Gold settled lower on Tuesday after Powell said the US central bank would push interest rates as high as needed to kill a surge in inflation.</p>.<p>Also hurting bullion's appeal among overseas buyers, the dollar index edged up 0.1 per cent, one day after posting its biggest single-day drop in more than two months.</p>.<p>Gold is losing appeal as the Fed's commitment to control inflation through tighter monetary policies is creating a dynamic that has pushed yields on the 10-year Treasury note to levels close to 3 per cent, Ricardo Evangelista, a senior analyst at ActivTrades, said in a note.</p>.<p>Investor flows into SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, continued to decline, reflecting bearish sentiment in the market.</p>.<p>Spot silver fell 0.3 per cent to $21.55 per ounce, while platinum was down 0.3 per cent to $948.50 and palladium rose 0.4 per cent to $2,061.56.</p>
<p>Gold prices dipped on Wednesday as a stronger dollar and Federal Reserve Chair Jerome Powell's hawkish comments to shore up US interest rate increases dimmed non-yielding bullion's appeal.</p>.<p>Spot gold was down 0.2 per cent at $1,810.62 per ounce by 1233 GMT, erasing small gains from earlier in the session that seemed to have been driven by limited safe-haven inflows amid growth risks tied to soaring inflation.</p>.<p>US gold futures fell 0.6 per cent to $1,807.70.</p>.<p>Gold's small uptick soon lost steam because higher US interest rates discourage investment in gold, which does not bear any interest despite being considered a hedge against soaring prices.</p>.<p>"The Fed has been key to the dollar strengthening and gold tumbling. And there's no letting up on their hawkish position," said Craig Erlam, senior market analyst at OANDA.</p>.<p>There's not much appetite for gold, and higher yields could continue to weigh on the metal, Erlam added.</p>.<p>Gold settled lower on Tuesday after Powell said the US central bank would push interest rates as high as needed to kill a surge in inflation.</p>.<p>Also hurting bullion's appeal among overseas buyers, the dollar index edged up 0.1 per cent, one day after posting its biggest single-day drop in more than two months.</p>.<p>Gold is losing appeal as the Fed's commitment to control inflation through tighter monetary policies is creating a dynamic that has pushed yields on the 10-year Treasury note to levels close to 3 per cent, Ricardo Evangelista, a senior analyst at ActivTrades, said in a note.</p>.<p>Investor flows into SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, continued to decline, reflecting bearish sentiment in the market.</p>.<p>Spot silver fell 0.3 per cent to $21.55 per ounce, while platinum was down 0.3 per cent to $948.50 and palladium rose 0.4 per cent to $2,061.56.</p>