Update: Gold Closes Mostly Steady as the Dollar's Rally Continues Ahead of Friday's Fed Speech

Update: Gold Closes Mostly Steady as the Dollar's Rally Continues Ahead of Friday's Fed Speech

Gold closed with a minor on Wednesday as the metal continues to struggle against a rising US dollar and higher bond yields ahead of Friday's speech from Federal Reserve chair Jerome Powell at the central bank's annual Jackson Hole, Wyoming, conference.

Gold for December delivery closed up US$0.30 to settle at US$1,761.50 per ounce.

The metal has struggled to hold its own against a rallying US dollar and rising bond yields. While the dollar's rise to near a two-decade paused on Tuesday after weak economic data, it rebounded on Wednesday, with the ICE dollar index last seen up 0.02 points to 108.64.

"(Gold's) ability to put up a fight against the current headwinds from a rising dollar and US 10-year yields above 3% points to reduced short selling conviction. The overall sentiment, however, remains relatively poor with the market focusing on Friday's Jackson Hole speech from Fed chair Powell. At this point a further recovery in prices probably needs to be accompanied by a weaker dollar," Saxo Bank noted.

Bond yields rose, bearish for gold since the metal offers no interest. The US 10-year note was last seen paying 3.112%, up 6.1 basis points.