WASHINGTON (dpa-AFX) - Gold prices were subdued on Wednesday, as the dollar held on to Tuesday's gains as a result of political uncertainty in France and in the wake of hawkish comments from Federal Reserve officials.
Spot gold slid 0.1 percent to $2,317.02 per ounce while U.S. gold futures were down 0.1 percent at $2,328.40.
On Tuesday, Federal Reserve governor Michelle Bowman has warned of upside risks to the inflation outlook and reiterated the need to keep borrowing costs elevated 'for some time'.
Her counterpart Lisa Cook said that the timing of any rate adjustment will depend on how economic data evolve and what they imply for the economic outlook and balance of risks.
Amid much uncertainty about the interest-rate outlook, investors braced for the release of key U.S. inflation reading, due later this week for further direction.
Markets currently price in 47 basis points of easing this year, with a rate cut in September pegged at 66 percent probability, according to CME FedWatch tool.
Geopolitical tensions also remained on investors' radar.
According to the Ukrainian army, Russian troops have launched around 100 deadly glide bombs and dozens of drones across the border over the last 24 hours.
Elsewhere, fighting raged between Israeli troops and Palestinian militants in Gaza's southern city of Rafah as fears grow of a wider regional war drawing in Lebanese Hamas ally Hezbollah.
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