The overnight rise in the greenback and Treasury rates limited gold price movement in Wednesday's Asian trade as markets expected additional hints on U.S. monetary policy from a number of Fed officials during the week.

Spot gold muted at $1,926.70 per ounce, meanwhile gold futures slumped by 0.1% to $1,951.65 per ounce

Despite the fact that the yellow metal recently saw a remarkable recovery from five-month lows, recent sessions have seen it stall due to pressure from the dollar's and yields' resurging strength.

On Wednesday, the dollar traded close to a six-month high and 10-year Treasury rates were near their highest levels in more than 20 years.

Widespread expectations for higher U.S. rates this year will make any significant increases in gold less likely since high rates increase the opportunity cost of holding the yellow metal.

A decrease in the likelihood of a U.S. recession this year has also hurt gold, which typically benefits from a risk-off atmosphere.

The markets are currently awaiting additional hints on American monetary policy from a number of Fed officials this week, beginning with Dallas Fed President Lorie Logan later on Wednesday.

Given that the inflation rate is still sticky and the labor market is strong, the Fed is still anticipated to retain its hawkish language. For the rest of the year, it is anticipated that this idea will have a negative impact on gold and other commodities.