Gold prices edged lower on Wednesday amid a slight strengthening of the dollar, while investors held back from making large bets ahead of US President Donald Trump's decision on appointments to the Federal Reserve, UNN reports with reference to Reuters.
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Spot gold price fell 0.2% to $3374.72 per ounce as of 04:42 GMT after reaching a nearly two-week high on Tuesday. US gold futures fell 0.1% to $3429.80.
The dollar rebounded from a weekly low reached in the previous session, which reduced gold's appeal to holders of other currencies.
"Gold is caught between opposing forces. Falling yields played into its hand, but the US dollar managed to stay afloat despite Friday's sell-off. This has led to the range we are seeing now, as prices await confirmation of all factors affecting the situation," said Ilya Spivak, head of global macroeconomics at Tastylive.
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On Tuesday, Trump said he would soon announce a short-term replacement for Fed official Adriana Kugler, who announced her resignation on Friday, as well as his nominee for the next Fed chair.
The CME FedWatch tool now estimates the probability of a rate cut in September at almost 87% after weaker-than-expected employment growth data was released on Friday, after which Trump fired the head of the US Bureau of Labor Statistics (BLS).
Regarding trade, Trump again threatened to raise tariffs on goods from India due to Russian oil purchases. New Delhi called his case "unjustified" and vowed to defend its economic interests, further exacerbating the trade rift between the two countries.
Perth Mint's gold product sales in July fell 33% compared to the previous month, and silver sales reached a six-month low, the company said on Wednesday.
Spot silver price remained at $37.82 per ounce, platinum fell 0.5% to $1314.76, and palladium fell 0.6% to $1168.42.