• Gold futures on the COMEX division of the New York Mercantile Exchange fell Wednesday for a second straight session, adding to their decline from the one-month high they hit at the start of the week as the U.S. dollar strengthened on the back of Brexit-induced weakness in the euro.
The most active gold contract for April delivery fell 1.9 U.S. dollars, or 0.15 percent, to settle at 1,253.70 dollars per ounce.
• The U.S. Dollar Index, rose 0.3% to trade above 100 as of 19:00 GMT. U.S. equities saw mixed trading after the Dow industrials on Tuesday snapped an eight-day losing streak
• The yellow metal fell Wednesday as the U.K. government letter formally starting the Brexit process was delivered to the European Council, kicking off two years of negotiations.
Brexit weakens the euro's appeal, said Spina. "The uncertainty within the EU has grown and nationalistic trends which, along with the economic issues, make the U.S. dollar a lot more appealing." Strength in the dollar can pressure prices for dollar-denominated commodities such as gold.
• Meanwhile, metals traders will continue to eye U.S. economic data for hints on the pace and timing of interest-rate hikes by the Federal Reserve.
• Chicago Fed President Charles Evans said Wednesday he supported one or two more U.S. rate hikes this year. The prospect of higher rates undercuts gold, which doesn' t offer a yield, in favor of other investments.
• Technically, April gold futures prices closed nearer the session high today. The gold bulls still have the slight overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,275.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,225.00. First resistance is seen at this week’s high of $1,261.00 and then at the February high of $1,264.90. First support is seen at this week’s low of $1,245.50 and then at $1,240.00. Wyckoff's Market Rating: 5.5
• Silver for May delivery stayed unchanged at 18.252 dollars per ounce.
Reference: Xinhua, Kitco
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