Firming dollar, interest rate hike drag gold down

Gold had a lackluster start on Wednesday trade in Asia as the dollar strengthened and the interest rate hike concern grew.

Gold futures lowered 0.60% to $1,781.10. The greenback, which usually moves inversely to gold, was up on Wednesday.

According to U.S. Treasury, an interest rate hike might be put in place to cool down the overheating economy due to President Joe Biden’s spending plans. However, no signs of inflation were seen, and that the Fed is not expected to move its rates.

In other precious metals, silver steadied at $26.52 per ounce. Palladium gained 0.1%. Platinum lowered 0.2%. A supply shortfall concern grew as Nornickel, a Russian nickel and palladium mining and smelting firm reported two waterlogged mines in Siberia.

In other news, the Bank of England is anticipated to lay down its policy decision on Thursday. Investors also await other upcoming economic data from the U.S., including the Institute of Supply Management (ISM) Non-Manufacturing Purchasing Managers Index (PMI) and ADP National Employment Report, both due later in the day.