Gold eases on firmer dollar and profit-taking

Gold slipped on Wednesday as the dollar firmed and investors booked profits after prices hit a more than two-week high in the previous session, reports Reuters.

Spot gold was down 0.5 per cent at $3,375.79 per ounce at 1119 GMT. US gold futures for December delivery eased 0.2 per cent to $3,425.10.

The dollar index, which measures the greenback against a basket of major currencies, rose about 0.4 per cent, making dollar-priced bullion more expensive for other currency holders.

"(Gold) prices are acting less like an arrow and more like a feather, with the prevailing direction of travel determined by the dollar. Current gold price weakness is likely attributable to some profit-taking...as momentum faded to the upside," independent analyst Ross Norman said.

Bullion hit its highest since August 11 on Tuesday after US President Donald Trump's attempt to fire Fed Governor Lisa Cook undermined confidence in the independence of the central bank and more broadly in US assets, boosting safe-haven demand.

Cook will file a lawsuit to prevent Trump from firing her, her lawyer said, kicking off what could be a protracted legal fight over the White House's effort to shape US monetary policy.

"Market participants will await the decision of US courts (regarding whether) Trump can fire Cook or not, before gold reacts more strongly," UBS analyst Giovanni Staunovo added.

The data focus is on the Fed's preferred inflation gauge, the Personal Consumption Expenditures Price Index, due on Friday, after dovish remarks from Fed Chair Jerome Powell at the Jackson Hole symposium last week.