Gold prices hit late Tuesday a 6-week peak. Strong demand for the physical gold from China ahead of the Chinese Lunar New Year played its role strengthening the prices.
Today, the precious metal prices lost their gains and traded lower as the U.S. dollar index got stronger on the day, pressuring the precious metal.
February gold lost $6.40 at $1,179.20 an ounce.
Silver also fell by 0.6 percent from the end of the last week, to $16.60 an ounce.
The dollar hit a 1-week high versus the Euro and Chinese Yuan.
The British Pound fell to 3-month low near $1.21, helping the gold price in Sterling touch fresh 7-week highs above £982 per ounce, after new data said the UK’s trade deficit with the rest of the world – already at 2.8% of GDP in the third quarter of 2016 – widened to £4.2 billion for the month of November.
Including imports and exports of all items logged by HM Revenue & Customs, the UK’s trade deficit in goods widened by 3.6% to £13.2bn for the worst November in at least 10 years.
Excluding non-monetary gold however – meaning primarily shipments of large bars through the London bullion market, the global center for wholesale dealing – the UK’s trade deficit in goods worsened 3.7% to £12.7bn, the second widest gap ever after September’s record £14.4bn reading.