Gold prices hit their lowest in a week on Wednesday as the dollar steadied after a recovery from last week's three-year low, while investors awaited the minutes of the US Federal Reserve's last policy meeting for clues on the pace of interest rate hikes this year. Spot gold was down 0.2 percent at $1,326.24 an ounce by 0805 GMT, slipping for a fourth straight session. Earlier in the day, prices touched the lowest since February 14 at $1,325.20 an ounce.

US gold futures dipped 0.2 percent to $1,328.3 per ounce. The dollar index, which measures the greenback against a basket of currencies, was up 0.2 percent at 89.879, after hitting a one-week high of 89.937. It hit a three-year low of 88.253 on February 16.

"Continued dollar strength and higher treasury yields should continue to see the yellow metal under pressure over the near-term," said MKS PAMP Group trader Sam Laughlin. "The return of China will be closely watched for any renewed physical interest in Asia to stem the weakness."

"A quicker and steeper slope of interest rate normalisation offers the most prominent near-term threat to gold prices as this outcome will send the US dollar surging," said Stephen Innes, APAC trading head at OANDA. Spot gold may drop to $1,316 per ounce as it has broken a support at $1,335, according to Reuters technical analyst Wang Tao.

Copyright Reuters, 2018