Gold prices traded lower on Wednesday, with a firmer dollar and a recovery in U.S. Treasury yields denting demand for bullion.
Spot gold slipped 0.3 percent to $1,964.22 per ounce while U.S. gold futures were down 0.2 percent at $1,970.40.
The dollar extended its rebound for a third day and Treasury yields remained elevated as investors reacted to cautious comments from Fed officials on the future rate path and await Chair Jerome Powell's speech for further clarity.
Fed Governor Christopher Waller said in a speech on Tuesday that Q3 U.S. GDP growth was a "blowout" performance that warrants a very close eye when thinking about policy going forward.
Fellow Governor Michelle Bowman said that the economy is gaining speed and requires a higher Fed policy rate.
Both Federal Reserve Bank of Minneapolis President Neel Kashkari and Chicago Fed President Austan Goolsbee also refused to rule out rate cuts, citing sticky inflation and resilience in the U.S. economy.
Fed Chair Powell is due to deliver opening remarks at the Division of Research and Statistics Centennial Conference today and participate in a policy panel discussion before the 24th Jacques Polak Annual Research Conference on Thursday.
