Gold prices fell on Wednesday to hover near one-week low as yields rose and the dollar strengthened ahead of a Federal Reserve meeting later in the day.
Spot gold was down 0.6 percent to $1,766.98 per ounce, after having dipped to its lowest since April 20 at $1,762.50. U.S. gold futures were down 0.7 percent at $1,766.20.
Benchmark U.S. 10-year Treasury yields jumped to their highest since April 13 and the dollar rose against its rivals, denting the appeal of the safe-haven asset.
The Fed is widely expected to maintain its ultra-easy monetary policy, but traders will be paying close attention to any changes to the accompanying statement that may signal a shift in the near future.
Market participants expect Chair Jerome Powell to continue to defend the dovish stance of the Fed and dismiss any suggestions of tapering bond purchases in his press conference.
Investors also await U.S. President Joe Biden’s address to a joint session of Congress for clues on further stimulus measures.