Gold steadied around $1,200 an ounce on Thursday, paring losses as the US dollar extended its losses, while weak demand for physical metal added pressure and uncertainty over the timing of a Federal Reserve rate hike underpinned prices. Spot gold was down 0.05 percent at $1,200.66 an ounce by 2:26 pm EDT (1826 GMT), having traded from $1,194.56 to $1,209.10. US gold for June delivery fell $3.30 to settle at $1,998 an ounce.
Gold prices extended intraday losses after US Federal Reserve Vice Chairman Stanley Fischer said signs were building that US inflation was headed toward the Fed's target, repeating his view that the central bank is likely to raise rates this year.
"That could be one of the intraday factors that moved the market a little bit lower, coupled with the overall perception that we're in a deflationary environment," said Eli Tesfaye, senior market strategist for RJO Futures in Chicago.
"Technically, it's hard to make a bullish case until this breaks above $1,210 near-term."
Spot silver was up 0.06 percent at $16.30 an ounce. Platinum was up 0.1 percent at $1,158.49 an ounce and palladium was up 1.4 percent at $728.25 an ounce.
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