Gold heading for 1st monthly loss in three

Gold prices steadied on Wednesday yet was headed for its first monthly decline in three as the US dollar climbed on expectations the Federal Reserve would keep interest rates higher for longer than previously thought.

Spot gold was largely unchanged at $1,958.69 per ounce by 1123 GMT. It has lost nearly 1.6 per cent so far this month and $120 from its near-record highs earlier in May.

US gold futures held steady at $1,976.30.

"The strong US dollar is likely to remain a headwind for gold prices. With the banking crisis on the back burner and the debt ceiling debacle all but resolved, the focus turns back to the inflation fight," Ilya Spivak, head of global macro at Tastylive, said.

Global shares fell ahead of a vote in Washington on the US debt ceiling, while the US dollar hit a more than two-month high after data showed China's recovery is stalling.

Elsewhere, spot silver rose 0.4 per cent to $23.32 per ounce, platinum fell 0.1 per cent to $1,012.97.