Gold Dips As Dollar Edges Higher Ahead Of Key US Data

Gold prices slipped on Wednesday, retreating further from a near nine-month high hit in the previous session, as investors awaited key U.S. data for further clarity on the outlook for economy and rates.

Spot gold dropped half a percent to $1,928.51 per ounce, while U.S. gold futures were down 0.3 percent at $1,928.75.

The focus is now on the fourth-quarter U.S. GDP data due Thursday, which could set the tone for the Fed’s Jan. 31-Feb. 1 policy meeting.

With monetary policy meetings for both the Federal Reserve and ECB set for next week, today’s downside could be attributed to profit booking.

While the European Central Bank (ECB) is set to raise interest rates by 50 basis points in both February and March, economists expect a 25-basis point increase at the FOMC’s next meeting at the end of this month.