Gold dipped on Wednesday as hawkish stance from Fed’s officials underpinned the greenback and treasury yields, adding pressure on gold.

However, bullion prices lingered watched since the latest heights, as continued worries over the geopolitical tension between Israel and Iran spiked the appetite on safe haven.

The yellow metal staged a big rally the earlier week hitting a peak on the attack of Iran on Israel, as markets currently anticipate Israel’s response which is alleged to be soon.

Spot gold muted at $2,382.65 per ounce, while gold futures dipped 0.4% to $3,398.70 per ounce. Spot gold touched historic peaks above $2,400 per ounce.

Gold retreated from record peaks this week as solid US inflation and retail sales figures drove traders to lower their projections that Fed will lower interest rate in June.

Expectations were further reinforced on Tuesday by Fed Chair Jerome Powell who stated that the central bank is hesitant to trim interest rate because of stubborn inflation.