Gold prices edge up after selloff as dollar eases

Gold prices gained on Wednesday, following a selloff in the previous session that pushed bullion to a seven-month low, after the dollar halted its rally.

Spot gold rose 0.4% to $1,770.71 per ounce, as of 0059 GMT. U.S. gold futures firmed 0.3% to $1,768.80.

Gold lost more than 2% on Tuesday, as sharp gains in the dollar and rising interest rates sapped appetite for the non-yielding asset and sent prices tumbling through psychological support at the $1,800 per ounce level.

Safe-haven demand strengthened the dollar in the previous session to levels last seen in 2002, making greenback-priced gold more expensive for buyers holding other currencies. 

Gold, however, found some respite on Wednesday, as the greenback slipped 0.1%.

Oil futures tumbled and bond prices rose on Tuesday as investors sought safety after the latest data fuelled fears of a global economic slowdown. 

Benchmark U.S. 10-year Treasury yields firmed above an over one-month low hit on Tuesday. 

More G10 central banks raised interest rates in June than in any month for at least two decades, Reuters calculations showed, and with inflation at multi-decade highs, the pace of policy-tightening is unlikely to let up in the second half of 2022.

Higher interest rates and bond yields raise the opportunity cost of holding bullion, which yields nothing.

Spot silver firmed 0.4% to $19.27 per ounce, while platinum was flat at $865.48, and palladium gained 0.3% to $1,938.28.