WASHINGTON (dpa-AFX) - Gold prices were subdued on Wednesday as investors weighed hawkish Fed comments against escalating geopolitical tensions in Europe and the Middle East.
Spot gold war marginally lower at $2,328.27 per ounce, while U.S. gold futures were down 0.2 percent at $2,342.65.
The dollar wobbled amid signs that U.S. economic activity remained lackluster in the second quarter.
May U.S. industrial production and manufacturing output both beat expectations while retail sales barely rose and April's data was revised significantly lower, sending Treasury yields lower and helping investors increase bets on two interest-rate increases this year.
Meanwhile, all Fed officials speaking Tuesday stressed the Fed's commitment to making decisions based on incoming economic data.
New York Federal Reserve President John Williams said interest rates will come down gradually as inflation eases.
Boston Federal Reserve President Susan Collins has cautioned against getting carried away with recent inflation data and urged patience on rate cuts.
Fed Governor Adriana Kugler struck a largely upbeat tone on the economic outlook and said that recent data on inflation has pointed to renewed progress.
Chicago Fed President Austan Goolsbee called the latest inflation data 'excellent, after a few months of less-excellent numbers.
Dallas Fed President Lorie Logan said the Fed is in a good position with rates to be patient.
St. Louis Federal Reserve Bank President Alberto Musalem, in his first speech in his new role on the economy, said the U.S. central bank should only start to cut interest rates after 'months, and more likely quarters' of falling inflation.
Following the Juneteenth holiday today, trading on Thursday may be impacted by reaction to U.S. reports on weekly jobless claims and housing starts.
On the geopolitical front, Ukrainian forces have launched a drone attack that set several oil storage tanks ablaze near the town of Azov in southern Russia, posing a threat to physical global supply and boosting the risk premium priced into crude futures.
Elsewhere, Israeli Foreign Minister Israel Katz said that the Iran-backed Hezbollah movement would be destroyed in the event of a 'total war'.
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