Gold prices fall as Dollar gains support on optimistic U.S. data
Gold prices traded lower earlier on Wednesday in Asia after the Dollar was unexpectedly bolstered by optimistic U.S. data.
Gold futures fell by 0.35%, trading at $1,972 by 12:25 PM ET (05:25 GMT), while the U.S. Dollar index gained 0.03% to 92.365.
Gold prices slumped below the $1,980 benchmark after it traded slightly higher on Tuesday. However, on Monday, the yellow metal found itself closer to the $2,000 after the Dollar took a hit from multiyear lows.
Though a better-than expected U.S. manufacturing data that was released overnight restored hopes for an economic recovery. The ISM manufacturing Purchasing Managers Index for August read at 56, gaining over July’s 54.2 and performing better in contrast to a forecasted 54.5 reading.
The Dollar is still expected to remain weak, steadying just below 92.5 over worries on inflation. Analysts believe that gold will continue its gains within the week.