05.06.201802:49:00UTC+00Gold Prices Steady on Increased Risk Appetite Amid Rate Hike Bets

Gold prices were on steady footing on Tuesday after declining for three days as investors chose to stock up on riskier assets amid rising prospects of an interest rate increase in the U.S. after solid U.S. economic data.

Spot gold was flat at $1,291.95 per ounce. Meanwhile, U.S. gold futures for August delivery edged down 0.1 percent at $1,295.80 per ounce.

Analysts said there is a lack of demand for gold, as people are making profit in equities. Wall Street's three major indexes rallied on Monday, driving the Nasdaq to a record closing high as investors bet on a continuation of solid economic growth.

The dollar index,which tracks the greenback versus a basket of six major currencies, traded up 0.1 percent at 94.080. The U.S. dollar climbed to 109.99 yen, the highest since May 24.

The stronger-than-projected U.S. jobs data published on Wednesday stoked expectations that the Federal Reserve would lift interest rates at its policy meeting beginning June 12.

Higher interest rates bolstered the dollar, making dollar-denominated gold more expensive for buyers using other currencies, and it also lowers investor interest in non-yielding bullion.

In other precious metal markets, silver advanced 0.3 percent to $16.41 per ounce. Platinum declined 0.3 percent at $898, after hitting a low of $893.45 per ounce earlier in the day, the lowest since May 22. Palladium fell 0.2 percent at $991.20 per ounce, after climbing to a six-week high of $1,010.50 in the prior session.