Gold Prices Turn Lower as U.S. Dollar Strengthens
Investing.com - Gold prices turned lower on Wednesday, as upbeat U.S. economic growth data pushed the dollar broadly higher, dampening demand for the precious metal.
Comex gold futures was down $7.65 or about 0.58% at $1,287.53 a troy ounce by 09:00 a.m. ET (13:00 GMT).
In a second estimate, official data showed that U.S. gross domestic product expanded by 3.3% in the third quarter, compared to an initial reading of 3.0%.
The upbeat report came a day after data showed that U.S. consumer confidence approached a 17-year high this month.
Investors were also encouraged by the fact that the U.S. Senate Budget Committee approved President Donald Trump's tax bill. A full Senate vote of the bill could now take place as soon as Thursday.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.09% at 93.28, off session lows of 92.93.
Gold is sensitive to moves in the dollar. A stronger dollar makes gold more expensive for holders of foreign currency.
Market participants seemed to shrug off news that North Korea successfully launched a new type of intercontinental ballistic missile that it claimed was capable of reaching the U.S. mainland.
Elsewhere on the Comex, silver futures were down 0.95% at $16.66 a troy ounce.
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