Gold settles lower as dollar climbs off 3-week trough

Gold futures tilted lower in American trade as the dollar index rose off September 27 lows for the third straight session, following earlier labor data from the US today. 

As of 02:57 GMT, gold futures due in December inched down 0.08% to $1,226.40 an ounce, while the dollar index inched up 0.12% to 95.69, marking October 10 highs. . 

Earlier US data showed the Philly Manufacturing Index down to 22.2 from 22.9, while unemployment claims fell 5 thousand in the week ending October 13 to 210 thousand, edging estimates of 211 thousand. 

Continuing claims fell 13 thousand to 1.640 million in the week ending October 6, as analysts expected 1.663 million. 

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". 

Otherwise, Gold holdings at SPDR Gold Trust, the world's largest gold-backed investment fund, steadied on Wednesday at 748.76 tonnes, the highest since August 31, after prices marked the sixth monthly loss in a row in September, the longest such losing streak since late 1996.