Gold Steady Below $1190 as Dollar Rally Loses Steam

Gold was steady after initially falling to a two-week low on Wednesday, as the dollar retreated from a one-month high, but the precious metal remained under pressure from expectations that a U.S. rate increase may come soon.

Spot gold was up 0.1 percent at $1,187.70 an ounce, after hitting $1,183.76 an ounce, the lowest since May 12. U.S. gold futures for June delivery settled down $1.30 at $1,185.60.

Gold had dropped 1.7 percent on Tuesday after firmer U.S. data supported the view that the U.S. Federal Reserve may raise interest rates this year.