Gold Ends Lower On Strong Dollar, Ahead Of Fed Minutes

(RTTNews) - Gold futures snapped a two-day gain to end lower on Wednesday, with investors awaiting minutes of the U.S. Federal Reserve September monetary policy meeting later today, while anticipating cues as to when the central bank will likely hike rates.

With no major economic releases for for the day, there was little by way of direction for the precious metal with the dollar also trending higher.

Gold for December delivery, the most actively traded contract, dropped $6.40 or 0.5 percent to settle at $1,206.00 an ounce on the Comex division of the New York Mercantile Exchange on Wednesday.

Gold for December delivery scaled an intraday high of $1,221.20 and a low of $1,205.10 an ounce.

On Tuesday, gold ended higher ahead of the minutes of the U.S. Federal Reserve September monetary policy meeting due Wednesday, with investors seeking cues as to when the central bank will hike rates.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged at 767.47 tons on Tuesday from its previous close of 768.66 tons.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 85.83 on Wednesday, up from its previous close of 85.66 late Tuesday in North American trade. The dollar scaled a high of 85.92 intraday and a low of 85.55.

The euro trended lower against the dollar at $1.2653 on Wednesday, as compared to its previous close of $1.2669 late Tuesday in North American trade. The euro scaled a high of $1.2691 intraday and a low of $1.2628.

In economic news, China's services sector continued to expand in September, albeit at a slower pace with a PMI score of 53.5, a survey from HSBC Bank showed Wednesday. That's down from 54.1 in August, although above the 50 that separates expansion from contraction.

U.K. house prices increased more than expected in September, data from Halifax showed Wednesday. House prices rose 0.6 percent in September from August, when prices remained flat. Economists had forecast a 0.2 percent rise for September. Annually, prices were 9.6 percent higher in the three months to September than in the same three months last year, similar to last month and in line with expectations.

Meanwhile, a survey from Bank of France showed Wednesday the French economy is forecast to grow marginally in the third quarter, even as business confidence weakened in September. Gross domestic product of France is forecast to grow 0.2 percent in the third quarter, unchanged from the previous forecast.

Business confidence in France dropped to 96 in September from 97 in August, while industrial production remained stable in September. Business leaders expect an increase in production in October. The composite index, which covers both manufacturing and services sectors, came in at 52.3, expanding for the fifth straight month but down from the 17-month high of 52.8 in August.

The Organization for Economic Cooperation and Development said Wednesday that its composite leading index signaled mixed outlook to major economies, characterized by weakening growth in the euro area and stable growth in most other major economies. The OECD composite leading index remained unchanged at 100.4 in August. On a yearly basis, the index rose by 0.14 percent.