SINGAPORE: Gold prices edged lower in Asian trade on Wednesday as a stronger dollar and prospects of higher US interest rates dampened the allure of the safe-haven metal, while palladium held firm after scaling a record peak in the previous session.
Spot gold was down 0.1% at $1,776.71 per ounce by 0711 GMT. US gold futures were steady at $1,775.90.
“A stronger dollar and Treasury Secretary Yellen’s rate-hike comments overnight continue to weigh on sentiment in Asia, with multiple failures ahead of the $1,800 an ounce region,” OANDA senior market analyst Jeffrey Halley said.
Investor focus is expected to shift to April payrolls data due on Friday for further cues on the health of the US economy.
So far, Federal Reserve Chair Jerome Powell has argued the labour market is still far short of where it needs to be to start discussing tapering asset buying.
Elsewhere, palladium rose 0.5% to $2,999.49 per ounce after hitting an all-time high of $3,017.18 in the previous session, driven by concerns of a shortage of the metal.
“Rallies in palladium and platinum are being driven by disrupted or limited supply of both metals meeting a huge jump in demand by car manufacturers,” Halley said.
Silver was down 0.8% at $26.33, while platinum eased 0.9% to $1,227.02 after hitting its highest level in more than two months on Tuesday.
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