Gold Prices Slip as Dollar Rebounds Following Plunge on Wall Street

Investing.com - Gold prices slipped on Wednesday in Asia as the dollar rebounded following a plunge on Wall Street overnight.

Gold futures for February delivery on the Comex division of the New York Mercantile Exchange traded 0.5% lower at $1,240.20 a troy ounce by 1:24 AM ET (05:24 GMT).

The U.S. dollar index that tracks the greenback against a basket of other currencies edged up 0.2% to 97.072. The safe-haven dollar gained after U.S. stocks slumped over 3% overnight.

The plunge in U.S. stocks came after top White House economic adviser Larry Kudlow backtracked from U.S. president Donald Trump’s announcement that Beijing had agreed to reduce tariffs on U.S.-made cars.

“It hasn’t been signed and sealed and delivered yet,” Kudlow said on Fox News Tuesday.

The dollar lost its upward momentum on dovish signals from the Fed, which indicated that rate hikes from 2019 would have to be re-evaluated on economic and inflation data vs previous assertions of a more hawkish policy.

Gold prices remained near-five-month highs as the greenback struggled in recent weeks, as traders suspect the Federal Reserve will pause its rate hike plan after a fourth Federal Reserve rate increase this month.

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