The price of gold was lingering around its three-week low Wednesday morning, with the US dollar recovering from its recent lows versus a basket of currencies.
Gold for August delivery, the most actively traded contract, eased $0.30 to $1,376.70 an ounce. Yesterday, gold settled lower after the Bank of Japan opted not to extend its stimulus program, with mounting speculation that the Federal Reserve may cut back its monetary easing measures in the near future. Nevertheless, the precious metal recovered from early lows as the dollar continued to struggle against some major currencies.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,009.85 tons.
Meanwhile, the U.S. dollar was leveling off from its four-month low versus the euro, while slipping back toward a fresh four-month low against sterling. The buck was lingering around its two-month low against the Swiss franc and the yen.
In economic news, euro zone industrial production grew 0.4 percent in April from a month ago, largely due to higher output of capital goods and non-durable consumer goods, data from Eurostat revealed. Industrial output was forecast to remain flat after rising 0.9 percent in March.
Germany's EU harmonized inflation accelerated in May, but to a lesser extent than initially estimated, final data released by the Federal Statistical Office showed. Inflation as per the harmonized index of consumer prices (HICP) rose to 1.6 percent in May from 1.1 percent in April. The flash estimates were for an inflation rate of 1.7 percent.
The number of people claiming unemployment benefits in the U.K. decreased by 8,600 in May from April, the Office for National Statistics reported. The decline was sharper than the expected drop of 5,000.
Elsewhere, the prices of silver and platinum were ticking higher in morning deals.
