Investing.com - Gold prices gave up early gains on Wednesday as the firmer U.S. dollar weighed, while silver rose to 11-month highs.
Gold futures for June delivery were down 0.41% at $1,249.2 an ounce by 1205 GMT.
Silver futures for May delivery were last at $17.04 an ounce, after rising to highs of $17.25 earlier, levels not seen since May 2015.
Silver has now gained 23% this year, compared to gold’s almost 18% rise.
With more than 50% of silver demand coming from industry, prices have been boosted by recent indications that China’s economy is stabilizing after a turbulent start to the year.
Still, gold prices posted their strongest quarterly gains in 30 years in the first quarter of 2016 as global growth concerns and investor uneasiness about negative-interest-rate policies in Japan and Europe bolstered investor appetite for bullion.
Demand for the metal was also underpinned by the view that the Federal Reserve is likely to stick to a cautious approach on future interest rates increases.
Higher U.S. interest rates would boost the greenback by making it more attractive to yield-seeking investors, while weighing on gold by making it more expensive for holders of other currencies.
The greenback was steady against a basket of the other major currencies on Wednesday as fresh falls in oil prices soured market sentiment and fed into a softer tone across commodities.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 94.02
The index had ended the previous session down 0.41% as a rally in oil prices and soft U.S. housing data weighed.
Elsewhere in precious metals trading, copper for May delivery was down 0.47% to $2.213 a pound.