Gold backs off 3-month high as dollar scales week high

Gold futures tilted higher in Asian trade away from July 17 highs as the dollar index climbed from September 27 lows, ahead of US labor data later today. 

As of 04:58 GMT, gold futures due in December shed 0.14% to $1,225.70 an ounce away from three-month highs, while the dollar index inched up 0.14% to 95.71, marking October 10 highs. 

Now markets await the US Philly Manufacturing Index, expected to decrease to 19.7 from 22.9, while unemployment claims for the week ending October 13 are estimated to have fallen by 4 thousand to 210 thousand. 

Continuing claims for the week ending October 6 are expected to have risen by 6 thousand to 1.668 million, while the CB leading index is estimated with a 0.5% increase, up from 0.4% in August. 

Otherwise, Federal Reserve Governor Randal Quarles is due to speak about the economic outlook at the Economic Club of New York luncheon later today.

The Federal Open Market Committee voted last month to increase borrowing rates for the third time this year by 25 basis points to below 2.25% as expected by analysts back then. 

US President Donald Trump accused the Federal Reserve of causing a sharp correction in markets with its interest rate policy, considering it too strict and a "mistake".