Gold was little changed on Wednesday as it failed to make the most of a pullback in the dollar, with demand for bullion being restrained amid prospects of aggressive monetary policies and rising U.S. bond yields.

Spot gold was flat at $1,711.00 per ounce by 0248 GMT. U.S. gold futures fell 0.1% to $1,708.80.

The dollar eased for a fourth straight session, though it stayed at elevated levels, making greenback-priced bullion less expensive for buyers holding other currencies.

Benchmark U.S. 10-year Treasury yields rose, lowering the appeal of non-yielding bullion.

Gold seems to be the odd person out, not participating in any broader relief rally on a lower dollar, said Stephen Innes, managing partner at SPI Asset Management, adding that central banks’ front-loaded rate hikes are clearly tarnishing bullion’s appeal.

European Central Bank (ECB) policymakers are considering raising rates by a larger-than-expected 50 basis points at their meeting on Thursday to tame record-high inflation, two sources with direct knowledge of the discussion told Reuters.

Since the dollar is reacting to a [possibly] more aggressive rate hike by the ECB, gold isn’t getting the bounce one would typically expect via a softer greenback, Innes said.

Although gold is seen as an inflation hedge, higher interest rates and bond yields raise the opportunity cost of holding bullion, which yields no interest.

Australia’s top central banker on Wednesday indicated a steady drum beat of interest rate rises were needed to stop a damaging inflationary cycle developing.

Meanwhile, Asian shares extended a global rally on Wednesday as strong U.S. corporate earnings and the expected resumption of Russian gas supplies to Europe helped lift sentiment and ease fears of a recession.

Spot silver firmed 0.2% to $18.77 per ounce, platinum rose 0.5% to $879.02, and palladium climbed 1% to $1,895.17.