Gold rally eases as dollar edges higher, investors cash out

Gold prices slipped on Wednesday, pulled down by a rebound in the dollar and profit-booking after bullion rose to a near three-week high in the previous session on expectations of interest rate cuts by the Federal Reserve next month. Spot gold was down 0.5% at $4,107.41 per ounce, as of 0421 GMT, after hitting its highest since October 23 on Tuesday. US gold futures for December delivery edged 0.1% lower to $4,113.80 per ounce. “The dip in dollar has suited gold and silver, which have both been posting gains this week,” KCM Trade Chief Market Analyst Tim Waterer said. “It appears that ‘normal service has resumed’ for gold, with the precious metal trading back above $4,100 while eyeing off targets further north should U.S. macro data continue to be supportive for additional monetary policy easing.” The dollar index, meanwhile, edged 0.1% higher against its rivals and was set to a snap a five session losing streak, making gold less attractive for other currency holders.