Gold remains near 1 month low

Gold declined near a one-month low on Wednesday and was set for a fifth consecutive monthly drop. Moreover, solid U.S. data and hawkish Federal Reserve comments pointing to higher interest rates dented the non-yielding metal’s appeal.

Spot gold stood at $1,723.28 per ounce, as of 0109 GMT, trading close to a one-month trough hit on Monday. It has decreased 2.5 percent so far in the month.

U.S. gold futures declined 0.1 percent to $1,734.40.

“The U.S. central bank will likely need to get its policy rate somewhat above 3.5 percent and keep it there through the end of 2023.” The influential chief of the New York Fed said on Tuesday.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings declined 0.44 percent to 976.26 tons on Tuesday from 980.61 tons on Monday.

The dollar index decreased 0.1 percent lower, while benchmark 10-year yields were off two-month highs hit in the previous session.