The Fed is likely to defer any possible increase until September or December, as
policymakers hold out for more evidence of a pickup in inflation.
Asian stocks settled near one-year highs on Wednesday while the safe-haven yen slumped
after Japan’s government announced a larger-than-expected economic stimulus package,
which led most of the region’s bourses higher.
The dollar was up 1 percent against the yen, after falling 1.1 percent in the previous session, on expectations of significant monetary stimulus by the Bank of Japan later in the week.
Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which the precious metal is priced.
Among other precious metals, palladium, which hit a nine-month high of $694.30 on Tuesday, was down 0.1 percent at $686.40 an ounce.
Silver was down 0.4 percent at $19.55, while platinum was little changed at $1,091.40 an ounce.