Gold subdued as robust dollar dims appeal; focus on Fed minutes

Gold prices were subdued on Wednesday in choppy trade as a robust dollar and the prospect the Federal Reserve could raise interest rates aggressively kept non-yielding bullion near a one-week low.

Spot gold XAU= was 0.1% lower to $1,921.60 per ounce by 8 a.m. EDT (1200 GMT). U.S. gold futures GCv1 were down 0.2% at $1,924.40.

Gold touched its lowest level since March 29, a move that came a day after Fed Governor Lael Brainard's comments bolstered expectations for aggressive action by the U.S. central bank to tame inflation. (Full Story)

Brainard's remarks propelled the U.S. dollar and Treasury yields to multi-year highs, dimming gold's appeal. USD/ US/

The Fed is due to release the minutes from its March 15-16 Federal Open Market Committee policy meeting at 2 p.m. EDT (1800 GMT).

"Gold could dip back into sub-$1,900 territory if the FOMC minutes or the Fed speak in the coming days offer more hawkish clues," said Han Tan, chief market analyst at Exinity.

Rising U.S. interest rates and higher yields increase the opportunity cost of holding bullion, which is also used as a hedge against rising inflation.

"However, further sanctions imposed on Russia that ramp up inflationary pressures and further darkens the global economic outlook should offer notable support for spot gold," Tan added.

Global share prices eased as the United States and its allies prepared new sanctions on Moscow over civilian killings which Ukraine described as "war crimes", while Russian artillery pounded the Ukrainian cities of Mariupol and Kharkiv. (Full Story) MKTS/GLOB

"There's still a number of things that could trigger another rally in gold. Inflation continuing to rise beyond current expectations, Ukraine/Russia talks collapsing or a recession," said Craig Erlam, senior market analyst at OANDA.

Among other precious metals, spot silver XAG= fell 0.7% to $24.15 per ounce, platinum XPT= edged 0.3% lower to $965.20 and palladium XPD= rose 0.4% to $2,247.53.

(Reporting by Eileen Soreng in Bengaluru; Editing by Amy Caren Daniel and Paul Simao)