Gold falls near two-week low

Gold prices fell to their lowest in nearly two weeks on Wednesday as the dollar firmed, while investors awaited a report on the Federal Reserve's preferred inflation gauge due later this week for the latest clues on the central bank's rate cut prospects, reports Reuters.

Spot gold fell 0.5 per cent to $2,308.00 per ounce by 1059 GMT, hitting its lowest since June 14. US gold futures also fell 0.5 per cent to $2,319.50.

"Gold flashed red on Wednesday thanks to hawkish comments from a Fed official in the previous session and a stronger dollar," said FXTM senior research analyst Lukman Otunuga.

Fed Governor Michelle Bowman on Tuesday reiterated her view that holding the policy rate steady "for some time" will probably be enough to bring inflation under control, but also repeated her willingness to raise borrowing costs if needed.

Higher interest rates increase the opportunity cost of holding non-yielding bullion.

The dollar rose 0.3 per cent against its rivals, making gold more expensive for other currency holders, while benchmark 10-year yields also edged higher.

"This could be a wild week for gold due to economic and political forces. The Biden Vs. Trump face off and PCE report could inject the precious metal with renewed volatility. In the near term, support can be found at $2300 and resistance at $2340," said Otunuga.

Investors will be watching out for the US first-quarter gross domestic product estimates and a crucial debate between US President Joe Biden and Republican rival Donald Trump on Thursday, and the personal consumption expenditures (PCE) price index report on Friday.

Data out on Tuesday showed US consumer confidence eased in June amid worries about the economic outlook, but households remained upbeat about the labor market and expected inflation to moderate over the next year.

Gold is also seen as a hedge against economic uncertainty.

Spot silver fell 0.2 per cent to $28.86, palladium lost 0.4 per cent to $943.91, while platinum climbed 1.5 per cent to $996.10.