Gold prices edged lower on Wednesday as the dollar stayed fairly steady amid hopes the Federal Reserve will not reduce interest rates in the near term.
However, the yellow metal’s decline was just modest as worries about growth and concerns over a likely no-deal Brexit continued to linger.
The dollar index advanced to 97.48 in early trades, and despite falling to aroud 97.30 subsequently, edged higher later and was last seen at 97.40, gaining 0.18%.
Gold futures for February ended down $1.90, or about 0.1%, at $1,478.70 an ounce.
On Tuesday, gold futures for February edged up $0.10 to $1,480.60 an ounce.
Silver futures for March ended down $0.023 at $17.049 an ounce, while Copper futures for March settled at $2.8125 per pound, down $0.0010 from previous close.
The dollar’s strength was also due to the recent batch of encouraging economic data. A report from the Federal Reserve on Tuesday showed U.S. industrial production jumped by 1.1% in November, after tumbling by a revised 0.9% in October.
Economists had expected industrial production to climb by 0.8% compared to the 0.8% slump originally reported for the previous month.
The bigger than expected rebound came as manufacturing output surged up by 1.1% after falling by 0.7% for two straight months.
A report from the Commerce Department showed new residential construction in the U.S. soared by 3.2% to an annual rate of 1.365 million in November after spiking by 4.5% to a revised 1.323 million in October.
Economists had expected housing starts to jump by 2.4% to a rate of 1.345 million from the 1.314 million originally reported for the previous month.
Meanwhile, traders were looking ahead to the debate and vote on two articles of impeachment against U.S. President Donald Trump today after weeks of testimony related to his dealings with Ukraine and hours of fiery debate over the process.
The material has been provided by InstaForex Company – www.instaforex.com