Investing.com - Gold was lower on Wednesday, driven down by the rise in the U.S. dollar.
Comex gold futures for April delivery slumped 0.95% to a five-day low of $1,329.30 a troy ounce as of 10:52 AM ET (14:52 GMT).
The price of the precious metal was lower due to a strengthening dollar. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.55% to 89.45.
Investors seek out gold as a store of value during times of geopolitical uncertainty or market turmoil, while a weaker dollar makes the dollar-denominated metal cheaper for holders of other currencies.
The dollar was bolstered by news that the U.S. economy grew at a faster pace than initially thought in the fourth quarter, according to data released on Wednesday.
Gross domestic product(GDP) was found to have grown by 2.9%, up from 2.5%, the Commerce Department said in its third estimate.
Meanwhile trade concerns have returned after the Chinese state run Global Times reported that Beijing would soon announce a full list of tariffs on U.S. imports to retaliate to planned U.S. levies.
Recent worries that protectionist trade policies from the U.S. and China might result in a trade war have boosted gold, amid fears over the impact on global economic growth.
Elsewhere on the Comex, silver futures were down 1.70% to $16.260 a troy ounce. Among other precious metals, Platinum Futures decreased 1.18% to $941.20, while Palladium Futures inched down 0.59% to $966.10 an ounce.
Meanwhile, copper futures fell 0.35% to $2.990 a pound.