IV:Gold lower in Asian trade as dollar continues overnight gains
Investing.com - Gold prices eased slightly in Asian trade on Wednesday as the dollar continued overnight strength in choppy trade on expectations for the Federal Reserve to begin winding down monetary stimulus programs in the near future, possibly next month.
Stimulus tools such as the Fed's USD85 billion in monthly bond prices support gold by weakening the greenback.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,268.70 a troy ounce, down 0.20%.
Gold prices hit a session low of USD1,260.70 a troy ounce and high of USD1,284.50 a troy ounce.
U.S. Treasury Secretary Jack Lew is in Asia for a series of leadership meeting in Singapore and Malaysia on Wednesday and Beijing later in the week with investors looking for any comments on the recent strength of the dollar.
Many expect the U.S. central bank to remain in standby mode until Janet Yellen takes the helm and holds her first policy meeting in March, though investors traded gold on the notion that be it in December or March, stimulus tools are on their way out.
Elsewhere on the Comex, silver for December delivery was at 20.723 a troy ounce, down 0.26%.
