Gold slips as dollar strengthens

Gold bars

Gold prices fell on Wednesday as the US dollar rose, with investors locking in profits and awaiting trade negotiations between the United States and China.

June gold futures settled 0.9% lower at $3,391.9 an ounce.

The decline came as the US Dollar Index — which measures the greenback against six major peers — rose 0.37% to 99 points by 9:52 p.m. Mecca time.

The pullback also followed easing global trade tensions, as markets looked ahead to a meeting between the US and Chinese trade ministers in Switzerland later this week to discuss tariff issues.

Meanwhile, the Federal Reserve held its benchmark interest rates steady at 4.25%-4.50%, while warning of rising risks to inflation and unemployment.