Gold steadied after falling more than 2% on Wednesday on signs the Federal Reserve will cut interest rates fewer times than previously anticipated, and as easing U.S.-China tensions dampened demand for safe-haven assets.

Bullion traded above $3,182 an ounce on Thursday, near its lowest level in more than a month. U.S. Treasury yields rose on expectations the Fed will lower borrowing costs more slowly than expected as the economic outlook improves following a U.S.-China trade truce. Higher yields and interest rates tend to be negative for non-yielding bullion.

Continued progress in U.S.-led trade talks also added to the bearish drag on the precious metal, with China suspending export restrictions on rare earths and other goods and technology on Wednesday. The detente between the world's two largest economies has dented gold's safe-haven appeal and led to a sharp rebound in risk assets this week.

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Gold is still up more than 20% this year, hitting a record high above $3,500 an ounce in April. Investors worry that trade tensions stemming from Trump's tariffs could spur faster inflation and slow growth, or even a recession.

Spot gold rose 0.2% to $3,182.85 an ounce as of 8:04 a.m. in Singapore. The Bloomberg Dollar Spot Index was steady. Silver and platinum were steady, while palladium edged up. (Newsmaker23)

Source: Bloomberg