Gold slipped on Wednesday from the previous day’s six-week peak as the dollar rose to a one-week high against the euro and on signs of softening physical demand.
Prices were supported at the lower levels however by worries over the global economic outlook, heightened this week after China said third-quarter growth was the slowest since 2009. That had lifted appetite for counter-cyclical assets such as gold.
Spot gold was down 0.3 percent at $1,244.85 an ounce, while U.S. gold futures for December delivery were down $6.50 an ounce at $1,245.20. On Tuesday gold rose to its highest since Sept. 10 at $1,255.20 an ounce.
“A lot of buying went through yesterday despite a lower euro, but gold failed to (decisively) breach the $1,255 level. I think we may see a correction today lower,” said Afshin Nabavi, head of trading at MKS in Switzerland.
“India, Malaysia and Singapore are closed for holidays, and also with the U.S. dollar strengthening, gold is coming off,” he added.