Gold prices slipped on Wednesday after rising for three straight sessions as the dollar held its gains on the back of upbeat U.S. economic data and equities edged up, whetting investor risk appetite.
announcement by China of new import tariffs on U.S. sorghum raised
concerns that a trade war was still a risk," analysts at ANZ said in a
note, adding, "this was mitigated by a stronger equity market in the
United States, after the first batch of companies reported a solid of
earnings for Q1."
gold fell 0.2 percent to $1,344.06 per ounce at 0414 GMT, while U.S.
gold futures for June delivery dipped 0.18 percent to $1,347.10 per
surged to $1,365.23 per ounce last week, their highest since Jan. 25, on
heightened tensions over Syria and U.S. sanctions on Russia.
geopolitical tensions have a short-term impact on price movement, but
overall it is the economy that determines prices," said Mark To, head of
research at Hong Kong's Wing Fung Financial Group.
dollar index, which measures the greenback against a basket of
currencies, was little changed at 89.494, after gaining 0.1 percent
Asian shares inched up after Wall Street took heart from the upbeat corporate earnings.
dollar index touched a three-week low of 89.229 on Tuesday before
pulling back on stronger-than-expected March U.S. housing starts and
steady industrial production figures.
Spot gold may retrace to a
support level at $1,334 per ounce, because it failed to break resistance
at $1,350, said Reuters technical analyst Wang Tao.
other precious metals, spot silver was little changed at $16.75 per
ounce, while platinum fell 0.1 percent to $934.99 per ounce, after
earlier climbing to a one-week high of $938.60.
Palladium was 0.3 percent higher at $1,012.50 per ounce.