Investing.com - Gold prices slid on Wednesday as the dollar pushed higher after upbeat U.S. economic reports on Tuesday supported the case for higher interest rates.
Gold was trading at $1,187.65 a troy ounce by 10:00 GMT.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.13% at 101.11, holding below the almost 14-year highs of 102.07 reached last Thursday.
Gold is priced in dollars and becomes less attractive to holders of other currencies when the dollar rises.
Demand for the dollar continued to be underpinned after solid U.S. economic reports on Tuesday fed into expectations for a December rate hike by the Federal Reserve.
U.S. third quarter growth was revised up to 3.2%, its strongest rate in two years, according to the Commerce Department.
Separately, the Conference Board’s consumer confidence index rebounded sharply in November after declining in October.
The reports come ahead of key reports later this week on manufacturing and jobs growth.
Also Tuesday, Fed Governor Jerome Powell said the case for raising interest rates has strengthened since the central bank’s meeting earlier this month, lending further credence to the view that the Fed will raise rates next month.
According to Investing.com's Fed Rate Monitor Tool, 100% of traders expect the Fed to raise interest rates at its policy meeting in December.
Higher rates typically support the dollar by making the currency more attractive to yield-seeking investors.
Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.
Prices of the yellow metal have fallen around 6.5% so far this month, putting it on course for its biggest monthly decline since June 2013.
Gold has been hard hit by expectations that increased U.S. fiscal spending under a Trump administration will spur economic growth and inflation, which would ultimately lead to an era of higher interest rates.
Elsewhere in metals trading, silver futures were at $16.76 a troy ounce, while copper futures traded at $2.608 a pound.
Copper prices have climbed around 18% this month on hopes that infrastructure plans in top consumers China and the U.S. will bolster demand for the industrial metal.
Palladium rose to $770.67, a level not seen since June 2015. The industrial metal has risen over 24% this month, its best monthly performance since February 2008.