Investing.com - Gold prices dipped in Asia on Wednesday with a stronger dollar weighing and markets awaiting President Donald Trump's selection for the new Fed chief.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange fell 0.22% to $1,275.50 a troy ounce. The U.S. dolalr index inched up to 93.84, up 0.01%.
Overnight, gold prices fell on Tuesday as traders continued to ditch safe-haven gold amid ongoing risk-on sentiment while an uptick in the dollar added to downside momentum in the precious metal.
Gold prices came under pressure as the dollar edged higher on signs of progress toward pro-growth tax reform and data showing bullish manufacturing and services growth.
House Republicans aim to introduce their tax bill on Nov. 1, CNBC reported citing a Capitol Hill source, fuelling investor expectations that tax reform is edging closer to fruition.
News on the progress of tax reform came just hours after investor expectations of solid quarterly economic growth received a boost on the back of data showing manufacturing and services activity topped economists’ forecasts.
The Markit 'flash' US Manufacturing Purchasing Managers' Index (PMI) rose to 54.5 in October, from a reading of 53.1 in September, beating economist forecast of a reading of 53.5.
Services growth, meanwhile, continued to remain steady amid an uptick in staff hiring and business optimism during October. The 'flash' US Services Business Activity Index increased to 55.9, topping expectations for a reading of 55.6.
Gold prices have consolidated in recent sessions as traders weigh the prospect of further downside amid uncertainty over the future path of interest rates and tax cuts.