Gold rebounded from two-week lows on Wednesday as the dollar's rally paused and global shares fell, rekindling investors' appetite for the precious metal. Spot gold rose 0.8 percent to $1,275.50 an ounce by 2:03 pm EDT (1803 GMT), while US gold for June delivery settled up 0.8 percent at $1,275.50 an ounce. The metal touched a low of $1,257.25 on Tuesday, its weakest since April 28.
"Today's move is mostly about the dollar and equities and the bigger picture that it's highly unlikely that the Fed's going to raise rates at the next meeting," said Bob Haberkorn, senior market strategist for RJO Futures in Chicago. Gold reached a 15-month high of $1,303.60 last week, before surrendering to the broad strength of the dollar.
"Gold has held technical support at $1,260, which is a positive sign, but we would have to wait for more US economic data and the consequent impact on the dollar to see whether we can consistently exit the $1,220-$1,260 range," ActivTrades chief analyst Carlo Alberto de Casa said. Other precious metals also advanced, with spot silver gaining 1.3 percent to $17.32 an ounce, platinum up 1.8 percent at $1,065.02 and palladium rising 2.5 percent to $605.63.
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