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Spot gold XAU= rose 0.3% to $1,928.96 per ounce by 1005 GMT.
U.S. gold futures GCv1 were 0.3% higher at $1,932.40.
Gold touched its lowest level since March 29 earlier, after
Federal Reserve Governor Lael Brainard spooked investors about
potential aggressive actions by the central bank to control
inflation. (Full Story)
Brainard's remarks propelled the U.S. dollar and Treasury yields
to multi-year highs, dimming gold's appeal. USD/ US/
"Gold could dip back into sub-$1,900 territory if the FOMC
minutes or the Fed speak in the coming days offer more hawkish
clues," said Han Tan, chief market analyst at Exinity.
Rising U.S. interest rates and higher yields increase the
opportunity cost of holding non-yielding bullion, which is also
used as a hedge against rising inflation.
Investors were awaiting the release of minutes from the Fed's
last policy meeting out at 1800 GMT on Wednesday.
"However, further sanctions imposed on Russia that ramp up
inflationary pressures and further darkens the global economic
outlook should offer notable support for spot gold," Tan added.
Global share prices eased as the United States and its allies
prepared new sanctions on Moscow over civilian killings which
Ukraine described as "war crimes", while Russian artillery
pounded Ukrainian cities of Mariupol and Kharkiv. (Full Story)
MKTS/GLOB
"There's still a number of things that could trigger another
rally in gold. Inflation continuing to rise beyond current
expectations, Ukraine/Russia talks collapsing or a recession,"
said Craig Erlam, senior market analyst at OANDA.
Among other precious metals, spot silver XAG= was up 0.2% at
$24.37 per ounce, platinum XPT= eased 0.1% to $967.56 and
palladium XPD= rose 0.9% to $2,257.27.
(Reporting by Eileen Soreng in Bengaluru; Editing by Amy Caren
Daniel)
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