The price of gold was moving lower Wednesday morning as risk appetite improved, with US major averages scaling multi-year highs in the previous session.
Gold for April delivery, the most actively traded contract, lost $11.40 to $1,592.80 an ounce. Yesterday, gold settled at a 6-month low amid a generally steady US dollar.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved down to 1,319.96 tons from 1,322.97 tons.
Meanwhile, the U.S. dollar was leveling off from its 3-week high versus the euro, while advancing toward a 9-month high against sterling. The buck was hovering around its two-and half year high versus the yen and ticking lower against the Swiss franc.
In economic news from the euro zone, Germany's EU harmonized inflation weakened in January as estimated earlier, final data released the Federal Statistical Office showed. Inflation as per the harmonized index of consumer prices (HICP) slowed to 1.9 percent in January from 2 percent in December.
Meanwhile, a report from Destatis revealed that Germany's producer price inflation rose to 1.7 percent on a yearly basis in January from 1.5 percent in December. The annual rate was forecast to ease to 1.2 percent in January. The 1.7 percent increase was last seen in September 2012 and marked the fastest since May 2012.
Bank of England policymakers voted 6-3 to maintain the size of quantitative easing at GBP 375 billion, the minutes of the meeting showed Wednesday.
Elsewhere, the price of silver was flat, while platinum was moving lower in morning deals.
From the U.S., the Commerce Department will release its housing starts report at 8:30 am ET. Economists estimate housing starts of 914,000 for January, while building permits are estimated at 920,000.
Simultaneously, the Labor Department will release its producer price inflation report for January. The consensus estimates call for a 0.3 percent increase in the producer price index and a 0,2 percent increase in the core producer price index.
