By Eileen Soreng
BENGALURU (Reuters) - Gold prices slipped on Wednesday after rising for three straight sessions as the dollar held its gains on the back of upbeat U.S. economic data and equities edged up, whetting investor risk appetite.
"The announcement by China of new import tariffs on U.S. sorghum raised concerns that a trade war was still a risk," analysts at ANZ said in a note, adding, "this was mitigated by a stronger equity market in the United States, after the first batch of companies reported a solid of earnings for Q1."
Spot gold fell 0.2 percent to $1,344.06 per ounce at 0414 GMT, while U.S. gold futures for June delivery dipped 0.18 percent to $1,347.10 per ounce.
Gold prices surged to $1,365.23 per ounce last week, their highest since Jan. 25, on heightened tensions over Syria and U.S. sanctions on Russia.
"Historically, geopolitical tensions have a short-term impact on price movement, but overall it is the economy that determines prices," said Mark To, head of research at Hong Kong's Wing Fung Financial Group.
The dollar index, which measures the greenback against a basket of currencies, was little changed at 89.494, after gaining 0.1 percent overnight.Asian shares inched up after Wall Street took heart from the upbeat corporate earnings.
The dollar index touched a three-week low of 89.229 on Tuesday before pulling back on stronger-than-expected March U.S. housing starts and steady industrial production figures.
Spot gold may retrace to a support level at $1,334 per ounce, because it failed to break resistance at $1,350, said Reuters technical analyst Wang Tao.
In other precious metals, spot silver was little changed at $16.75 per ounce, while platinum fell 0.1 percent to $934.99 per ounce, after earlier climbing to a one-week high of $938.60.
Palladium was 0.3 percent higher at $1,012.50 per ounce.
(Reporting by Eileen Soreng in Bengaluru; Editing by Eric Meijer)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)