Gold steadied on Wednesday, taking a breath from the greenback that plunged after witnessing a three-month peak, yet expectations for early U.S. interest rate cut were fading, the yellow metal's outlook remained unclear.

Spot gold muted at $2,035.12 per ounce, while gold futures stabilized at $2,050.95 per ounce.

Bets on rising interest rates for extended periods hurt the price of gold, particularly after many upbeat US economic figures and Fed’s hawkish remarks.

Amid these signals, the greenback and the US treasury yields advanced. While the US dollar edged down a bit from three-peak touched on Wednesday, the dollar remained on solid foot till now in 2024, hitting robust gains.

A more optimistic forecast for US interest rates will hurt the gold, considering that investing in bullion has a higher opportunity cost due to high rates.

Eyes are currently on signals from the US economy to assess the direction of the gold price movement.