The price of gold was little changed Wednesday morning amid global growth concerns after the recent warning from the IMF on world economic growth.
Gold for December delivery, the most actively traded contract, eased $0.40 to $1,764.60 an ounce. Yesterday, gold extended losses for a third session amid global growth concerns and an uncertain outcome of the euro zone finance ministers meeting over Greece and Spain. Prices were under pressure after the International Monetary Fund cut its projection of world economic growth and Greece was granted just 10 days to fulfill all bailout funding conditions for the next tranche of aid. The dollar continued to strengthen impressively against some major currencies, while the euro continued to slide.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at a record high of 1,340.52 tons.
Meanwhile, the U.S. dollar continued to recover from a two-week low versus the euro and advancing to a monthly high against sterling. The buck was trading flat versus the Swiss franc and the yen.
In economic news from the euro zone, Germany's wholesale price inflation increased in September at the fastest pace since November 2011, data from Destatis revealed. Wholesale prices rose at a more than expected pace of 4.2 percent year-on-year in September after climbing 3.1 percent in August. The annual rate was forecast to reach 3.3 percent.
Meanwhile, France's industrial production growth accelerated in August, increasing hopes that the second largest euro zone economy could escape a recession in the third quarter. Data released by statistical office Insee showed that industrial production rose by 1.5 percent month-over-month in August, faster than the 0.6 percent gain seen in July. Economists were looking for a 0.3 percent decline.
The prices of silver and platinum were trading lower in morning deals.
From the U.S., the Commerce Department will release its wholesale inventories report at 10 a.m. ET. Economists expect wholesale inventories at the end of August to show a 0.4 percent increase compared to a 0.7 percent increase in July.
