Gold was little changed after hitting a three-month low as a flurry of data showed a surprisingly strong US economy, giving the Federal Reserve more scope to keep raising rates. 

Investors reassessed the health of the US economy, after consumer confidence came in at the highest since the beginning of 2022 and purchases of new homes jumped to the fastest annual rate in more than a year. Treasury yields rose following the data, a negative for bullion, which doesn't offer interest.

The likelihood of more tightening in the US and elsewhere will put more pressure on the precious metal, which is down around 7% from a peak in early May. Swaps traders are no longer pricing in rate cuts later this year, the prospect of which spurred large gains earlier in 2023.

However, there's still some concern that a hawkish Fed will push the world's largest economy into recession, which would offer support for gold. Later in the week investors will eye US data on growth and inflation for guidance on the outlook for rates.

Spot gold lost 0.2% to $1,909.51 an ounce as of 9:27 a.m. in London, after falling 0.5% on Tuesday. The Bloomberg Dollar Spot Index added 0.2%. Silver, platinum and palladium declined.

Source : Bloomberg