Gold prices made little progress on Wednesday after losses in the previous session caused futures to fall below a crucial positive level, while the strengthening dollar kept pressure on the prices of other metals in general.

Spot gold muted at $1,949.88 per ounce, meanwhile gold futures steadied at $1,986.35 per ounce.

Markets were concerned that the U.S. economy's resiliency would allow the Fed flexibility to continue raising interest rates as a result of some signs of recovery in the manufacturing sector and construction investment in the country.  

The price of gold and the majority of other metals, which stand to lose in a rising rate environment, were affected by this idea.

Any indications of labor market resiliency encourage the Federal Reserve to continue raising interest rates, which is bad news for gold. Analysts anticipate that July's payroll growth moderated marginally but remained close to previous high levels.

The outlook for gold is still unclear, especially given that U.S. interest rates are expected to stay higher for longer this year. Even though a rate reduction by the Fed is anticipated for next year, there is only predicted to be a limited amount of support for gold in the short run.