 "Gold up 6.7% in Jan on renewed prospect as safe asset")
Gold edged lower on Wednesday as hawkish comments from US Federal Reserve officials raised bets on a rate hike this year, with traders waiting for minutes from the last Fed policy meeting for more clues.
New York Fed President William Dudley said a rate hike in September was possible, while Atlanta Fed President Dennis Lockhart said the US economy is likely strong enough for at least one rate increase before the end of 2016, with two a possibility.
Spot gold was down slightly at $1,343.78 an ounce at 0409 GMT. The metal rose 0.5% on Tuesday.
US gold fell 0.6% to $1,349.20 an ounce.
"The comments (on rate hikes) are certainly pricing on gold even though there isn't much change," said ANZ analyst Daniel Hynes.
Also Read
"Gold investors have held relatively well despite these issues cropping up. This indicates the broader level of support for this market."
Spot gold looks neutral in a range of $1,333.50-$1,358.01 per ounce, and an escape could suggest a direction, according to Reuters technical analyst Wang Tao.
Markets will seek fresh direction from comments expected from St. Louis Fed President James Bullard and the release of the Fed's July policy meeting minutes later in the session, as macro economic data from the world's largest economy has been mixed so far.
"While the next round of Fed rate hike is not seen far ahead, there is higher possibility of a break down into $1,200-1,215 for gold," said Moses Harding, an independent strategist in financial services and global markets and an advisor to board at SBM Holdings Ltd, Mauritius.
The dollar edged away from 7-week lows against the yen and euro on Wednesday. The dollar index was up 0.1% at 94.864 after losing 0.8% on Tuesday, touching a 7-week trough.
A stronger dollar discourages gold buying by making the metal more expensive for holders of other currencies.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.19% to 962.23 tonnes on Tuesday.
Silver was up 0.3% at $19.83 an ounce on Wednesday.
Platinum was up 0.4% at $1,117.30, while palladium was down 0.5% at $696.72.
