Gold prices continued to fall on Wednesday in Asia as the dollar was supported by robust U.S. data.
traded lower to, while the inched up
Prices of the precious metal slid back down to below $1,980-mark after a small peak the day before. Gold prices marched towards on Monday thanks to the dollar’s decline to multiyear lows.
But the better-than-expected U.S. manufacturing data released overnight restored hopes for economic recovery. The for August came at 56, above the predicted
“The manufacturing number came out much better than expected and that’s what caused gold to pare back its gains, and (also) gave little strength to the dollar,” Bob senior market strategist at Futures, told Reuters.
Similarly, China and Japan showed an uptick in manufacturing on Tuesday. In China
That said, the dollar remained weak this week on inflation expectations, hovering below 92.5. Analysts believe gold will remain supported in the near term.