Investing.com - Gold prices trimmed gains on Wednesday, as continued strength in the U.S. dollar dampened demand for the precious metal.
Gold for December delivery was up 0.01% to $1,221.70 on the Comex division of the New York Mercantile Exchange, down from $1,222.00 late Tuesday.
Gold prices gained ground on Tuesday, recovering from the lowest levels since January as the dollar eased after hitting four year highs against a basket of major currencies.
But demand for the dollar continued to be underpinned after data on Tuesday showed that the U.S. manufacturing sector expanded in September, matching the rate of growth seen in the previous month, which was the strongest in over four years.
The data added to the view that the ongoing economic recovery in the U.S. could prompt the Federal Reserve to raise interest rates sooner than markets expect.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was steady at 84.85, just below Monday’s four-year highs of 84.86.
Separately, gold prices found some support amid increased safe haven demand as U.S. airstrikes in Syria stocked concerns over geopolitical risks.
Gold has traditionally been seen as a safe haven investment in times of global economic uncertainty.
Elsewhere in metals trading, Comex, silver for December delivery dropped 0.51% to $17.788 a troy ounce, while December copper slipped 0.12% to trade at $3.032 a pound.