Gold subdued as robust dollar dims appeal

LONDON, Apr 06 (Reuters): 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 was 0.1 per cent lower to $1,921.60 per ounce by 8 a.m. EDT (1200 GMT). US gold futures GCv1 were down 0.2 per cent 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 US central bank to tame inflation.
Brainard's remarks propelled the US dollar and Treasury yields to multi-year highs, dimming gold's appeal.
"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 US 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.