Gold recovered some ground on Wednesday as a pull-back in U.S. bond yields offered some respite to the previous metal.
Spot gold rose 0.7 percent to $1,745.23 per ounce, after having fallen to its lowest in over a month the previous day. U.S. gold futures were up 0.4 percent at $1,745.05.
The dollar index hovered near a more than 10-month high touched the previous day, while the benchmark U.S. 10-year Treasury yields held close to over a three-month peak.
Gold found some support after Fed Chair Jerome Powell cast some doubt over a quicker than expected rate hike.
Powell said on Tuesday the U.S. economy is still far from achieving maximum employment, a key component of the central bank’s requirements for raising interest rates.
“What I said last week was that we had all but met the test for tapering. I made it clear that we are, in my view, a long way from meeting the test for maximum employment,” said Powell, testifying before the U.S. Senate Banking Committee.