Gold prices slipped on Wednesday, moving further away from a six-year peak hit in the previous session, as the dollar gained after Federal Reserve officials played down expectations of aggressive monetary easing.
Spot gold was down 0.6 per cent at $1,415.01 per ounce as of 0122 GMT, after hitting its highest since May, 2013 at $1,438.63 in the previous session.
US gold futures were steady at $1,418.50 an ounce.
Fed Chair Jerome Powell on Tuesday said the central bank is "insulated from short-term political pressures," pushing back against US President Donald Trump's demand for a significant rate cut.
Powell, however, said Fed policymakers are wrestling with whether uncertainties around US tariffs, Washington's conflict with trading partners and tame inflation require a rate cut.
Separately, St. Louis Fed President James Bullard told Bloomberg Television he does not think the US economy is dire enough to warrant a 50-basis-point cut in July.
Trump said on Twitter on Monday that the Fed "doesn't know what it is doing," adding that it "raised rates far too fast" and "blew it" given low inflation and slowing global growth.
The dollar index against a basket of six major currencies gained 0.2 pct on Wednesday after touching a three month low in the previous session.
The United States hopes to re-launch trade talks with China after President Donald Trump and President Xi Jinping meet in Japan on Saturday, but Washington will not accept any conditions around the US use of tariffs in the dispute, a senior administration official said on TuesRead More – Source