Gold Hits Two-Week Low as Higher Yields and Dollar Weigh

Gold prices hit a two-week low on Wednesday as higher US Treasury yields and a firmer dollar weighed on investor sentiment. The precious metal steadied at $4,333.49 per ounce by 0017 GMT after hitting its lowest since August 14 earlier.

The decline in gold was attributed to the rising interest rates environment, with U.S. Treasury yields advancing amid the escalating Middle East conflict and concerns over inflation.

Despite being an inflation hedge, gold's appeal is dampened by higher interest rates, as it offers no yield. The ADP employment report is due later in the day, followed by nonfarm payrolls data on Friday, which will provide clues on the interest-rate path.