Gold price steadies after sharp falls

BENGALURU, Feb 28 (Reuters): Gold prices steadied on Wednesday after falling more than 1.0 per cent in the previous session after new Federal Reserve Chairman Jerome Powell's comments suggested the possibility of four US interest rate increases this year rather than three.

The dollar hit a three-week high versus a currency index, with investors still bullish after Powell noted rising US inflation and vowed to prevent overheating in the economy.

A strong dollar makes dollar-priced gold costlier for investors using other currencies.

Spot gold had edged up 0.1 per cent to $1,319.52 an ounce by 1106 GMT. It closed 1.1 per cent lower on Tuesday after hitting the lowest since Feb 9 at $1,313.26.

US gold futures were up 0.2 per cent at $1,320.90.

"In the short term we're bearish gold. Our forecast is for an average of $1,300 for the first quarter. The worst scenario for gold is a rising dollar and rising yield," Macquarie analyst Matthew Turner said.