SINGAPORE: Gold prices slipped on Wednesday as a stronger dollar offset support from a pullback in global equities, while investors awaited monetary policy strategies from central banks this week.
Spot gold was down 0.3% at $1,925.97 per ounce by 0616 GMT. US gold futures fell 0.5% to $1,933.80.
"Traders in Asia will adopt a cautious tone, preferring to wait for New York to open and clearer evidence as to whether the USD rally and stock market sell-off will continue," said Jeffrey Halley, a senior market analyst at OANDA.
"However, a deeper correction below $1,900 cannot be ruled out if the dollar stays strong," he added.
Weighing on gold's appeal, the dollar index rose to a near one-month high against its rivals.
But bullion found some support as Asian shares weakened, following a tech-led selloff on Wall Street on Tuesday that had forced investors to seek safe havens.
Investors now await the outcome of the European Central Bank's policy meeting, due on Thursday. While no major policy moves are expected since it has acted aggressively to shore up the virus-hit economy, investors will watch out for its inflation forecasts.
Gold is used as a hedge against inflation and currency debasement.