Investing.com - Gold prices were still lower on Wednesday, as strong U.S. economic data boosted demand for the dollar weighed although the precious metal remained within close distance of the previous session's 10-month peak.
Comex gold futures were down around $7.07 or about 0.53% at $1,311.85 a troy ounce by 08.35 a.m. ET (12:35 GMT).
The U.S. dollar found support after data showed that the U.S. private sector added more jobs than expected in July.
In addition, a preliminary report showed that U.S. economic growth for the second quarter was revised even higher expected.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.53% at 92.80, pulling further away from 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.
Safe-haven demand initially strengthened following North Korea's missile launch over on Monday.
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.
Elsewhere on the Comex, silver futures lost 0.6 cents or about 0.49% to $17.36 a troy ounce.