Gold prices continued to fall on Wednesday in Asia as the dollar was supported by robust U.S. data.
Prices of the precious metal slid back down to below $1,980-mark after a small peak the day before. Gold prices marched towards $2,000 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. for August came at 56, above the predicted 54.5 and better than the 54.2 in July.
“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 Haberkorn, senior market strategist at RJO Futures, told Reuters.
Similarly, China and Japan showed an uptick in manufacturing on Tuesday. In China, the
That said, the dollar rion expectations, hovering below 92.5. Analysts believe gold will remain supported in the near term.