Gold Prices Rise Despite Stronger Dollar

Prices of safe-haven gold moved slightly higher on Wednesday morning in Asia after an overnight dip.

Gold futures for April delivery on the Comex division of the New York Mercantile Exchange were up 0.24% to $1,287.85 a troy ounce by 11:05 PM ET (4:05 AM GMT) on Wednesday morning.

The yellow metal recovered despite a firmer dollar, which was supported by data out on Tuesday that showed a rebound in U.S. housing and services activity. The data eased concerns over a slowdown in the world’s biggest economy.

The U.S. Dollar Index that tracks the greenback against a basket of six major currencies rose 0.07% to 96.863.

A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.

On Tuesday, China lowered its GDP growth target for 2019 to 6% to 6.5% amid its unresolved trade spat with the U.S., which underpinned the U.S. dollar. Gold prices remained little changed at a one-month low.

In mid-February, gold prices rose to around $1,349 but then took a hit and have been hovering below $1,290 since then.