Gold edged lower Wednesday mainly on weak economic reports from the US while a rebounding dollar also hit the precious yellow metal.
Spot gold was seen trading at $1540.81 an ounce at 1.00 p.m Singapore time while US gold for August delivery was at $1542.02 an ounce on the comex division of Nymex.
Analysts said the yellow metal is likely to ease further during the day as euro debt concerns eased while US Fed chairman’s remark on country’s economy might be another aspect to influence its movements.
The Federal Reserve has said it will stop buying Treasuries as part of its so-called quantitative easing program at the end of the month.
The Federal Reserve has said it will stop buying Treasuries as part of its so-called quantitative easing program at the end of the month.
They however said the dollar index, DXY which rebounded from a one-month low hit on Bernanke's comments temporarily affected its appeal.
Meanwhile, spot silver lost as much as 1.2 percent to $36.66, before rebounding slightly to $36.83.
Silver, which leads the precious metals complex with a near 20-percent year-to-date rise, is expected to outperform other precious metals over the long term, as investors may continue to favor its leverage to gold, said Austria-based hedge fund Superfund.
On Tuesday, gold futures fell from a five-week high as European debt concerns eased, eroding the appeal of the precious metal as a haven. Silver futures for July delivery rose 26.4 cents, or 0.7 percent, to $37.046 an ounce on the Comex.
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