The price of gold was ticking lower Wednesday morning, with the US dollar holding onto its recent gains ahead of trade balance data, due out later today.
Gold for December delivery, the most actively traded contract, shed $8.80 to $1,403.20 an ounce. Gold extended the rebound to retest $1415.00 level earlier in European trading.
Yesterday, gold gained over 1 percent to settle above the $1,400-mark, regaining its safe haven appeal on continued tension over military action against Syria with President Barack Obama pushing hard for a quick Congressional approval. The precious metal also found support after concerns surfaced over strikes looming ahead at South African gold mines and on some upbeat manufacturing activity data out of China.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved down to 919.23 tons from 921.03 tons.
Meanwhile, the U.S. dollar was hovering around its 6-week high versus the euro and a three-week high against the Swiss franc. The buck was trading flat versus sterling and the yen.
In economic news from the euro zone, activity in the German private sector economy increased for the fourth successive month in August final data from a survey conducted jointly by Markit Economics and BME showed. The seasonally adjusted composite output index, a measure of activity in the manufacturing sector and the service sector, rose to a seven-month high 53.5 in August from 52.1 in July. The preliminary estimates were for a score of 53.4.
Meanwhile, the euro zone private sector expanded at the fastest pace in just over two years, but the rate of growth was slightly weaker than initially estimated in August, final survey data from Markit Economics showed. The composite output index rose to 51.5 in August from 50.5 in July. The final reading was slightly below the flash estimate of 51.7.
A report from Eurostat revealed that retail sales in euro zone increased less than expected in July. Sales rose 0.1 percent in July from a month earlier compared with forecast for a 0.2 percent growth. This followed a 0.7 percent decline in June.
Elsewhere, the prices of silver and platinum were moving lower in morning deals.
From the U.S., the Commerce Department is due to release its trade balance report for July at 8:30 am ET. The consensus estimates call for a widening of the trade deficit to $39 billion from $34.2 billion for June.
