Gold prices edged up on Wednesday as worries about inflation kept investors on tenterhooks, although U.S. Federal Reserve Chair Jerome Powell's comments to shore up rate increases have kept non-yielding bullion's gains in check.
Spot gold was up 0.2% at $1,818.39 per ounce by 1014 GMT, while U.S. gold futures eased 0.1% to $1,816.60.
Gold prices are already down over 4% so far this month after hitting a low of $1,786.60 an ounce on Monday, its weakest level since end-Jan.
"It's been a tough month for gold but it has enjoyed a little reprieve in recent days as the dollar has pared some of its gains," said Craig Erlam, senior market analyst at OANDA.
"While providing short-term relief, there's not much appetite still for gold and higher yields could continue to weigh, putting pressure on $1,800."
A rebound in stocks ran out of steam, while data showed British inflation hit the highest level in 40 years, offering some support to gold.
Gold settled lower on Tuesday after Powell said the U.S. central bank would ratchet interest rates as high as needed to kill a surge in inflation.
"The Fed has been key to the dollar strengthening and gold tumbling. And there's no letting up on their hawkish position," Erlam added.
Higher U.S. interest rates and Treasury bond yields discourage investing in gold, which does not bear any interest.
Gold is losing appeal as the Fed's commitment to control inflation through tighter monetary policies is creating a dynamic that has pushed yields on the 10-year Treasury note to levels close to 3%, Ricardo Evangelista, a senior analyst at ActivTrades, said in a note.
Investor flows into SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, continued to decline, reflecting a bearish sentiment in the market.
Spot silver rose 0.4% to $21.71 per ounce, while platinum gained 1.4% to $964.43 and palladium jumped 1.3% to $2,078.75.
(Reporting by Swati Verma and Roshan Abraham in Bengaluru; Editing by Shinjini Ganguli)