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Gold prices headed back towards seven-month lows on Wednesday as the ascending dollar and bond yields after strong U.S. jobs data kept markets expectant of further monetary policy tightening, while palladium slipped to its lowest level since late 2018.

Spot gold eased 0.1% to $1,821.86 per ounce by 0548 GMT, while U.S. gold futures dropped 0.2% to $1,837.10.

Prices fell for a seventh consecutive session on Tuesday to touch their lowest levels since March at $1,813.90, as the U.S. dollar strengthened on data showing U.S. job openings unexpectedly increased in August. [USD/]

The continuous selloff in U.S. Treasuries is keeping gold under pressure but since most of the moves have been priced in, there should not be any further corrections in bullion prices, said Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai.

"We are at the end of the (Fed) rate hike cycle with another 25 bps likely and I think it will be over then. The last legs are very painful and that is what we are witnessing now."

The benchmark U.S. 10-year bond yield scaled fresh 16-year highs, diminishing demand for non-interest-paying bullion. [US/] [GOL/ETF]

Fed officials consider the rising long-term Treasury yields as evidence their tight-money policies are working.

U.S. Treasury Secretary Janet Yellen said on Tuesday she was very optimistic about the outlook for the economy.

Other precious metals were also pressured by an elevated dollar, with spot silver down 0.4% at $21.07 per ounce, having slipped to its lowest since mid-March in the last session.

"Any near-term relief may find resistance at the $22.20 level, while failure to defend the $20.75 may pave the way towards the $19.80 level next," IG market strategist Yeap Jun Rong said.

Platinum slid 1.1% to $862.37, its lowest in a year. Palladium dropped 2% to $1,164.94 and hit its lowest since November 2018.