Gold steadied near its lowest close in more than three months, with investors weighing the latest hawkish commentary from Federal Reserve Chair Jerome Powell.

Markets raised bets on future Fed interest-rate hikes this year after Powell on Wednesday said policymakers could potentially raise rates in July and September to curb inflation. The hawkish turn by the central bank has helped push gold back toward $1,900 an ounce after coming close to a record high in May.

Still, the yield on 10-year Treasuries slumped and stocks pulled back on Wednesday following Powell's comments, indicating lingering concern that the Fed will be forced to reverse course as the economy slows down. That would support bullion.

The US will later on Thursday release data on growth and initial jobless claims, which will be eyed for indications of how the economy and labor market are holding up to higher interest rates.

Spot gold lost 0.1% to $1,904.89 ounce as of 9:11 a.m. in London, after retreating 0.3% on Wednesday. The Bloomberg Dollar Spot Index was flat. Silver and platinum climbed, while palladium fell further after closing at its lowest in more than four years on Wednesday.

Source : Bloomberg