As weaker than projected US economic figures encouraged expectations that the Federal Reserve will have limited headroom to keep raising rates, gold prices stabilized around three-week highs on Wednesday. This was made possible by a weaker dollar.

Spot gold slipped 0.1% to $1,936.45 per ounce, while gold futures dipped 0.1% to $1,963.85 per ounce.

The yellow metal experienced a significant run-up during the previous week, benefiting from some safe-haven demand as traders grew increasingly pessimistic about the prognosis for the U.S. economy.

The likelihood that U.S. rates will stay higher for longer and the plethora of economic indicators that will affect the rate outlook this week, however, cast a shadow on future advances in gold prices.

On Wednesday, the dollar and Treasury yields both recovered some of their recent losses. In the previous session, they had both plummeted precipitously as a result of weaker-than-anticipated data on consumer confidence and job opportunities.

With a revised report on second-quarter GDP growth anticipated later on Wednesday, attention is now firmly focused on other important economic statistics. The favorite inflation indicator of the Fed, personal consumption expenditures data, is expected on Thursday, while August nonfarm payrolls are scheduled to release on Friday.