Palladium hits lowest level since 2018
Geopolitical risk premium gained by gold erodes analyst

Reuters Gold prices retreated for a third straight session on Wednesday as investors looked for fresh cues on the U.S. central bank39;s interest rate stance, while palladium hit a fiveyear low.

Spot gold was down 1 at 1,947.89 per ounce by 301 p.m. ET 2001 GMT, logging its biggest daily drop since Oct. 2. U.S. gold futures settled 0.8 lower at 1,957.8.

Silver fell 0.5 to 22.52 per ounce.

Traders will start looking at economic data and potential actions from the U.S. central bank. Gold will react based on whatever the data is showing, said Daniel Ghali, commodity strategist at TD Securities.

It is hard to see a catalyst for further upside in gold without a notable deterioration in the data.

A slew of Federal Reserve officials on Tuesday maintained a balanced tone on the central bank39;s next decision, but noted they would focus on more economic data and impact of higher longterm bond yields.

Fed Chair Jerome Powell is set to speak at 200 p.m. ET on Thursday.

Gold is sensitive to rising U.S. interest rates, as they increase the opportunity cost of holding the nonyielding asset.

The risk premium gold gained from the IsraelHamas war is eroding. If you see an escalation in the conflict, then gold can get some momentum behind it, said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

Bullion gained over 7 in October as the conflict in the…