Gold prices continued plunging on Wednesday as hints of aggressive stance from Fed questioned market participants about possible early interest rate trims, prices were also impacted by the dollar's recovery.

Spot gold slipped by 0.4% to $2,019.70 per ounce, meanwhile gold futures slumped by 0.4% to $2,022.90 per ounce. Both slid yesterday beyond 1%.

Tuesday's drop in gold prices came when Fed Governor Christopher Waller indicated that rate cuts should be done cautiously and that the latest strength of the US economy will probably cause any cuts to be postponed.

In addition to pushing the greenback to a one-month high, his remarks caused Treasury yields to spike sharply higher, with the 10-year rate rising beyond 4%.

The expectation of prolonged increases in U.S. interest rates significantly countered the current demand for gold as a safe haven, driving traders to shift from gold to the US dollar.

Eyes are now on the release of the industrial production and retail sales figures, scheduled to release during the day.