Gold prices fell on Wednesday, pulled down by firmer US Treasury yields with investors looking out for policy cues from the Federal Reserve's meeting, while palladium eased after hitting a record peak in the previous session.

FUNDAMENTALS

• Spot gold was down 0.5% at $1,767.76 per ounce by 0131 GMT. US gold futures were down 0.5% at $1,770.00 per ounce.

• Palladium fell 0.6% to $2,924.12 per ounce, after hitting an all-time high of $2,962.50 on Tuesday.

• Benchmark US 10-year Treasury yields rose to their highest since April 15, increasing the opportunity cost of holding non-yielding bullion.

  • The dollar index rose 0.1% against its rivals, making gold less appealing for other currency holders.

• Market participants awaited the US Fed's statement due later in the day, for cues on the central bank's monetary policy.

• Japanese retail sales rose at the fastest pace in five months in March as consumer demand recovered from the huge hit it took from the COVID-19 pandemic last year.

  • US consumer confidence jumped to a 14-month high in April as increased vaccinations against COVID-19 and additional fiscal stimulus allowed for more services businesses to reopen, boosting demand and hiring by companies.

• Senior US officials on Tuesday pledged sustained support for India in helping it deal with the world's worst current surge of COVID-19 infections.

• Silver fell 0.9% to $26.00 per ounce. Platinum was down 1% at $1,216.75.