Investing.com – Gold prices remained moderately lower on Wednesday, as the U.S. dollar staged a modest rebound from a three-year trough, but the precious metal’s losses were expected to remain limited.
Comex were down 0.10% at $1,335.80 a troy ounce by 08:20 a.m. ET (12:20GMT), just off Tyuesday’s fresh four-month peak of $1,345.00.
The dollar slightly recovered on Wednesday, although the risk of a potential U.S. government shutdown was expected to limit gains.
Fresh political tensions emerged in Washington after comments by President Donald Trump on immigration dampened the prospects that a broad spending and immigration deal can be reached by the end of the week, raising the possibility of a government shutdown.
The greenback has recently been pressured lower by concerns the global economic recovery will outpace U.S. growth and prompt other major central banks, led by the European Central Bank to begin unwinding loose monetary policy at a faster pace than expected.
Expectations that the ECB could soon start to scale back its monetary stimulus program received a boost on Monday after ECB Governing Council member Ardo Hansson said bond purchases could end in one step in September if the economy and inflation develop as expected.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.33% at 90.53, after hitting a fresh three-year trough of 89.98 overnight.
Gold is sensitive to moves in the dollar. A stronger dollar makes gold more expensive for holders of foreign currency.
Elsewhere on the Comex, added 0.12% to $17.21 a troy ounce.
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Source: Investing.com
