Gold prices inched lower on Wednesday, as hawkish comments from Federal Reserve officials and strong U.S. data doused hopes for early interest rate cuts, while investors awaited a slew of economic reports this week for more clarity on rate trajectory.
Spot gold fell 0.2% to $2,024.46 per ounce by 0327 GMT. U.S. gold futures were unchanged at $2,025.50.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
"That said, rising geopolitical tensions may limit its downside... with the $2,000 level on watch as near-term support to hold," Rong said.
The dollar index (.DXY) fell 0.1%, but hovered near a six-week high hit on Tuesday. Yields on benchmark U.S. 10-year Treasury notes edged lower, but held above 4%.
In wider financial markets, Asian shares rose on optimism that Chinese authorities would offer support for its stock markets, which have plummeted to multi-year lows.
Market focus is on the U.S. flash PMI report due at 1445 GMT later in the day, fourth-quarter advance GDP estimates on Thursday and personal consumption expenditures data on Friday.
Traders have priced in five quarter-point Fed rate cuts for 2024, down from six cuts two weeks ago. Initially seen in March, the first cut is now expected in May with an 89% probability, according to LSEG's interest-rate probability app IRPR.
A Fed official last week said the baseline for cuts to start was in the third quarter.
Spot silver fell 0.2% to $22.38 per ounce, platinum slipped 0.1% to $899.21, and palladium fell 0.5% to $943.23.
