Investing.com - Gold prices turned lower on Wednesday, as investors locked in profits fron the precious metal's rally to a 10-month peak in the previous session and as geopolitical tensions between the U.S. and North Korea seemed to subside.
Comex gold futures were down around $6.18 or about 0.45% at $1,313.15 a troy ounce by 03:50 a.m. ET (07:50 GMT).
Safe-haven demand initially strengthened on Tuesday after North Korea fired a missile that flew over northern Japan, in the latest act of provocation by Pyongyang.
Following the missile test, the U.S., Japan and South Korea asked for a United Nations Security Council meeting.
But market sentiment improved as U.S. President Donald Trump's reaction to the North Korean aggression was seen as more moderate than in the past. The U.S. President did warn that "all options are on the table" however.
Lower geopolitical tensions also led to a slight rebound in the dollar on Wednesday, as investors turned to upcoming reports on U.S. nonfarm employment and second-quarter growth.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.14% at 92.40, off the previous session's two-and-a-half year trough of 91.55.
Gold is sensitive to moves in the dollar. A stronger dollar makes gold more expensive for holders of foreign currency.
Elsewhere on the Comex, silver futures lost 0.6 cents or about 0.36% to $17.36 a troy ounce.