Gold futures closed lower on Wednesday, retreating from a two-week high and breaking a four-day winning streak as strong economic data weakened the commodity’s appeal as a safe haven.
However, concerns about a spike in coronavirus cases and slow rates of vaccinations in several countries have limited the downside of gold.
The dollar index, which fell to 92.14 around late morning, recovered well and was last seen at 92.41, up 0.08% from the previous close.
June gold futures fell $ 1.40, or less than 0.1%, to $ 1,741.60 an ounce.
Prices have remained largely unchanged since the Federal Reserve released the minutes of its last policy meeting.
Silver May futures rose $ 0.020 to $ 25,247 an ounce, while May copper futures rose $ 4.0545 a pound, $ 0.0620 down from the previous close.
In terms of US economic news, a US Department of Commerce report showed that the US trade deficit widened to $ 71.1 billion in February from a revised $ 67.8 billion in January. Economists had expected the deficit to widen to $ 70.5 billion from $ 68.2 billion originally announced the previous month.
The wider deficit came as the value of exports fell 2.6% to $ 187.3 billion and the value of imports fell 0.7% to $ 258.3 billion.
The minutes of the last Federal Reserve meeting on monetary policy showed that the central bank is unlikely to change its ultra-weak monetary policy anytime soon.
Participants in the March meeting acknowledged the improvement in the medium-term outlook for real GDP and employment growth, but continued to believe that the uncertainty surrounding the outlook had increased.
The protocol showed that most participants still view the coronavirus pandemic as posing a significant risk to economic prospects.
Strong data from the eurozone and the UK services sector raised hopes for a quick economic recovery. The data showed that the eurozone services PMI rose from 45.7 to 49.6 in March. This is above the preliminary value of 48.8.
The IHS Markit / CIPS Composite Purchasing Managers Index, which measures the huge UK services sector and its manufacturers, rose to 56.4 in March from 49.6 in February.
The material is provided by InstaForex – www.instaforex.com.