By Brijesh Patel
(Reuters) -Gold prices fell for the second straight session on Wednesday, hurt by a stronger dollar and signs of de-escalation in U.S.-Chinese trade tensions as investors looked forward to U.S. economic data due this week.
Spot gold was down 1% at $3,382.78 an ounce as of 0905 GMT. However, bullion was on track to log its fourth consecutive monthly gain, up 5.1% so far in April.
U.S. gold futures slipped 1.2% to $3,292.30.
“The market is currently experiencing high volatility as the two-way flows compete. In short, it looks as if gold may be entering a well-earned period of consolidation,” said Ross Norman, an independent analyst.
The dollar index rose 0.2% against its rivals, making bullion more expensive for other currency holders. [USD/]
“Gold prices are lower in more stable conditions as the market took stock of what appeared to be a de-escalation of the U.S.-led trade war that has rattled the financial markets in recent weeks,” Frank Watson, market analyst at Kinesis Money, said in a note.
“That said, gold’s reluctance to move much lower can be taken as a sign that the financial markets are still on edge amid uncertainty over U.S. trade policies and their ultimate impact on the wider global economy.” [MKTS/GLOB]
U.S. President Donald Trump signed a pair of orders to soften the blow of his auto tariffs on Tuesday, while his trade team touted its first deal with a foreign trading partner.
Bullion, a safeguard against political and financial turmoil, last soared to a record high of $3,500.05 per ounce on April 22 as investors sought refuge from global economic turmoil.
Investors will turn their focus to a series of U.S. economic data, including U.S. personal consumption expenditures (PCE) later in the day and the non-farm payrolls report on Friday, that could shed more light on the Federal Reserve’s interest rate outlook.
Elsewhere, spot silver dipped 1.8% to $32.38 an ounce, platinum fell 0.9% to $968.15 and palladium lost 0.7% to $928.32.
(Reporting by Brijesh Patel in Bengaluru; Editing by Emelia Sithole-Matarise)
