The price of gold was ticking lower Wednesday morning with the US dollar trading steady versus a basket of currencies.
Gold for April delivery, the most actively traded contract, eased $2.50 to $1,671.00 an ounce. Yesterday, gold snapped its 2-session winning streak to settle lower as the dollar continued to trade higher against a few major currencies, with little catalysts for direction. The precious metal was also impacted by the political uncertainties in Spain with allegations of corruption linked to the ruling alliance. Prime Minister Mariano Rajoy is at the center of an allegation that he received secret money with the opposition clamoring for his resignation.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,328.09 tons.
Meanwhile, the U.S. dollar was lingering around its 14-month low versus the euro and hovering near its 5-month high against sterling. The buck was trading around its two-and half year high versus the yen and ticking higher against the Swiss franc.
In economic news from the euro zone, Germany's factory orders grew more than expected in December, reflecting robust orders from euro zone economies. Orders advanced 0.8 percent in December from a month ago, data published by the Federal Ministry of Economics and technology showed. The rate of increase was marginally above a 0.7 percent rise forecast by economists and reversed November's 1.8 percent drop.
A survey by Markit Economics showed that Germany's construction sector contracted for the tenth consecutive month in January, though at a slower rate than in the previous month. The seasonally adjusted purchasing managers' index for the construction sector increased to 47.7 in January from 43.3 in December, signaling a slower deterioration in operating conditions. An index reading below 50 indicates decline in activity.
The price of silver was ticking lower, while platinum hovering around its four-month high in morning deals.
