Gold prices were lower early Wednesday as the U.S. dollar firmed as political turmoil eased and low U.S. inflation cooled rate fears.
Gold for April delivery (GCJ8) was down US$3.60 to US$1,326.50 per ounce after rising US$6.30 a day earlier as U.S President Donald Trump fired his Secretary of State.
The greenback firmed after dropping yesterday on the U.S. political turmoil, with the ICE dollar index ($DXY) up 0.08 at last look to 89.76. A lower dollar makes gold less expensive for international buyers, boosting demand for the metal.
Tame U.S. inflation has also checked gold prices , with a 0.2% rise in U.S. consumer prices reported Tuesday easing concerns that rising prices would force the Federal Reserve to cool the economy buy raising interest rates more than expected.
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