Gold bounces off 2-week high as dollar rebounds

Gold prices fell on Tuesday, and gave up a 2-week high hit yesterday due to profit-taking, to head for the first daily loss in 4 days, as the US dollar rose against its peers.

Gold prices fell 0.8% to $1,755.35 an ounce, after opening at $1,769.93, and hit a high of $1,769.94.

Gold closed higher by 0.5% yesterday, the third straight daily gain and hit a 2-week high at $1,770.55 an ounce, after a massive sell-off wave on US stocks after Facebook's applications stopped working.

The dollar index rose 0.2% today, the first profit in 4 days against a basket of major rivals.

The recovery comes amid increased investor interest on the greenback following increased bets on policy tightening in the US before yearend. 

The US Department of Labor will release the monthly jobs report on Friday, which could increase the chances of policy tightening in the US before a interest rate hike.

Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at the lowest level since April 7, 2020 of 986.54 metric tonnes.