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Gold fell below the key $1,900 per ounce level on Wednesday, as a rebounding dollar and U.S. Treasury yields dimmed its appeal, although continued expectations of a dovish stance from U.S. Federal Reserve kept its losses limited.

· Spot gold was 0.3% lower at $1,893.20 per ounce by 2:14 p.m. EDT (1814 GMT), having earlier hit its highest since Jan. 8 at $1,912.50.

· U.S. gold futures settled up 0.2% at $1,901.20 per ounce.

· SPDR GOLD HOLDINGS:

· The rise in U.S. yields and the dollar strength gave some people excuse to get out of gold, said Edward Moya, senior market analyst at OANDA.

“But we are still going to see gold prices continue to rise and $1,950 level seems like a very short-term goal,” Moya added.

· Benchmark U.S. 10-year Treasury yields turned higher, increasing the opportunity cost of holding the non-yielding gold, while the dollar index rebounded from lows, making gold expensive for holders of other currencies.

· Several Fed officials have reiterated their commitment to a dovish policy stance, while Fed vice chair Richard Clarida on Tuesday said they can curb an outbreak of inflation should it occur without throwing recovery off track.

· Fed Vice Chair Richard Clarida said on Tuesday the central bank would be able to deal with rising inflation without derailing the economic recovery in the U.S.

· San Francisco Fed President Mary Daly told CNBC on Tuesday that while she was encouraged by the improvement in the economy, it was not yet time to change policy.

· Fed's Quarles signals he is open to talks on bond program

A top Federal Reserve official signaled on Wednesday he was ready to open talks on reducing some of the U.S. central bank’s emergency support for the economy, even if only to clarify the Fed’s plans as the economy roars ahead and prices rise.

“I don’t want to overstate my concern,” the Fed’s vice chair for supervision, Randal Quarles, said at a Brookings Institution event. He noted he did not expect a round of 1970s-style breakout inflation, and that he was “fully committed” to a new Fed strategy that aims to keep monetary policy running full-throttle while jobs recover.

But he also laid out the case for why the “upside” risks of higher inflation may be mounting, and how the Fed may need to begin smoothing the way for a policy shift.

· “With investors still sounding the alarm over inflation, institutional interest in the precious metals complex is likely to continue rising following months of outflows, providing an offsetting force against taper fears for the time being,” TD Securities said in a note.

· Gold is often considered a hedge against inflation.

· Market participants are now looking to U.S. gross domestic product, jobless claims and consumer spending data this week.

· Elsewhere, palladium fell 0.8% to $2,747.59 per ounce.

· Silver eased 1.1% to $27.68 per ounce.

· Platinum rose 0.4% to $1,187.51 per ounce.

· Iran bans bitcoin mining as its citiessuffer blackouts and power shortages

Iran has banned the energy-intensive mining ofcryptocurrencies such as bitcoin for nearly four months, as the country facesmajor power blackouts in many cities.

The ban is effective immediately and will be in placeuntil Sept. 22, Rouhani told state TV, in the latest sign of high-profilerejection of the popular digital currency.

Cryptocurrencies bitcoin and ether were up a fraction of 1% and steady after a volatile weekend.

· China's crypto crackdown speeds shift to central Asia, North America mining

A crackdown by Beijing is rapidly accelerating a shift in focus by makers of machines that 'mine' cryptocurrencies like bitcoin from China to North America and Central Asia as Chinese clients face an uncertain future.

· Japan lowers economic view due to Covid impact on consumption and business conditions

The government will release revised first-quarter GDP figures on June 8.

· China is still behind on buying enough U.S. goods to fulfill ‘phase one’ trade deal

As the trade deal between the U.S. and China runs into its second year, Chinese purchases are still running short of the agreed amount, according to the U.S.-based Peterson Institute for International Economics.

· U.S. says looking at Quad meeting in fall focused on infrastructure

The United States is looking to convene an in-person fall summit of leaders of the Quad countries - Australia, India and Japan - with a focus on infrastructure in the face of the challenge from China, President Joe Biden's Indo-Pacific policy coordinator said on Wednesday.

Kurt Campbell said other countries were welcome to work with the Quad, which held a first virtual summit in March and pledged to work closely on COVID-19 vaccines, climate and security.

· U.S. bank profits rose 29% as outlook for future credit losses adjusted downward

· Belarus leader says detained journalist was plotting ‘bloody rebellion’

· Death threats and arrests: Belarus opposition media struggles at home and abroad

· CORONAVIRUS UPDATES:

· French COVID-19 cases, patient numbers and deaths fall further

· U.S. administers 289.2 mln doses of COVID-19 vaccines – CDC

· EU expects to get more than a billion COVID-19 shots by September

The document, seen by Reuters and prepared by the European Commission, shows the EU is confident of having enough vaccines to immunise its entire eligible population by that date, well beyond the initial goal of inoculating 70% of the adult population by the end of the summer.

The EU expects to get 413 million doses in the second quarter, and another 529 million in the third, according to the EU document. It received 106 million in the first quarter.

By the end of the year, the EU forecasts it will receive another 452 million doses, for a total of 1.5 billion.

The estimates take into account only vaccines from Pfizer/BionTech (PFE.N) (22UAy.DE), Johnson & Johnson (JNJ.N), AstraZeneca (AZN.L) and Moderna (MRNA.O).

They exclude doses from German biotech CureVac (5CV.DE) and French drugmaker Sanofi (SASY.PA), which have signed contracts with the EU for hundreds of millions of doses but are struggling to develop their vaccines and get them approved by EU regulators.

· EU seeks large AstraZeneca fine for alleged contract breach

A lawyer for the European Union accused AstraZeneca (AZN.L) on Wednesday of failing to respect its contract with the 27-nation bloc for the supply of COVID-19 vaccines and asked a Belgian court to impose a large fine on the company.

· Biden orders closer review of Covid origins as U.S. intel weighs Wuhan lab leak theory

· UK government failed public with ‘disastrous’ mistakes over Covid response, former PM aide says

The U.K. government pursued a strategy of so-called “herd immunity” in response to the coronavirus crisis, according to Prime Minister Boris Johnson’s former advisor, saying he is “completely baffled” by attempts from Downing Street to say otherwise.

The government has repeatedly denied this was the case. Herd immunity occurs when enough of a population is immune to a disease, making it unlikely to spread and protecting the rest of the community.