Comments from ECB chief Mario Draghi on Tuesday were seen as opening the door to monetary policy tweaks, while Bank of England Governor Mark Carney has also raised the prospect of a UK interest rate hike in the coming months this week.
Comments from two top Bank of Canada policymakers have also raised hopes of an interest rate hike next month. "To a substantial degree, the latest U.S. dollar weakness is thus due to the strength of other currencies, meaning that gold has been profiting to a below-average extent," Commerzbank said in a note.
Gold is poised to end the second quarter less than $1 an ounce from where it began, its most static quarterly performance in more than two years. Autocatalyst metal palladium has been the best performer of the major precious metals this quarter, rising 8 percent. It hit a more than 16-year high this month after a surge in speculative demand pushed the metal through long-term chart resistance.
Palladium was down 0.77 percent to $848.40 an ounce. Among other precious metals, silver was 0.89 percent lower at $16.62 an ounce after touching a two-week high of $16.90 early in the day, while platinum was down 0.47 percent at $915.20 per ounce.