Gold hovered near its lowest level in more than a month on Thursday as the dollar and U.S. Treasury yields jumped after Federal Reserve officials forecast an earlier-than-expected rate hike.
Spot gold edged up 0.2% at 0039 GMT in early Asian trade after falling 2.5% in the previous session to $1,803.79 per ounce, the lowest level since May 6.
U.S. gold futures fell 2.4% to $1,816.90 per ounce.
The dollar index against other currencies surged to its highest level in two months, making gold more expensive for holders of other currencies.
The benchmark 10-year gold yield rose to its highest level since June 4 to 1.594%, increasing the opportunity cost of holding non-interest-bearing gold.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.1% to 1,045.78 tonnes on Wednesday.
Silver rose 0.6% to $27.14 per ounce, palladium fell 0.1% to $2,794.16 and platinum rose 0.1% to $1,123.50 per ounce.