Gold fell as lower oil prices eased market jitters and left investors with little need to hedge against inflation and as the dollar clawed back some recent losses.
With oil prices down below $130 a barrel from a peak of $147 just a couple of weeks ago, the dollar has enjoyed a fairly strong week.
At 9:48 a.m., spot gold was trading lower at $934.05 from $948.30 in late New York trading hours on Tuesday.
Gold rallied to a record $1,032.50 per ounce in March on a combination of safe-haven buying amid the credit crunch, dollar weakness and high oil prices. The U.S. Federal reserve was also still in its rate cutting cycle. However, recent comments from Fed have hinted the central bank may start raising rates soon.
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Gold Tumbled Following Lower Oil Prices
The U.S. Federal reserve was also still in its rate cutting cycle
