Spot gold held its ground at $1,816.63 per ounce at 0047 GMT. U.S. gold futures edged 0.1% lower to $1,814.10.
The U.S. dollar rose on Wednesday, snapping a three-session losing streak, as concerns about the outlook for global economic growth and rapid inflation knocked sentiment a day after Fed Chair Jerome Powell struck a more hawkish tone.
A stronger dollar makes gold less attractive for buyers holding other currencies.
U.S. Treasury yields fell on Wednesday, tracking losses on Wall Street, after poor U.S. housing data added to growing slowdown concerns amid aggressive monetary tightening by the Fed, buoying demand for zero-yield gold.
Two U.S. central bankers say they expect the Fed to downshift to a more measured pace of policy tightening after July as it seeks to quell inflation without lifting borrowing costs so high that they send the economy into recession.
Although seen as an inflation hedge, bullion is sensitive to rising U.S. short-term interest rates and bond yields, which raise the opportunity cost of holding it.
British inflation surged last month to its highest annual rate since 1982, pressuring finance minister
Sunak to offer more help for households and the Bank of England to keep raising interest rates despite a risk of recession.
Spot silver fell 0.2% to $21.35 per ounce, platinum dropped 0.8% to $927.77, and palladium slipped 1% to $1,996.92.