Gold prices edged up on Wednesday from an eight-week low hit the session before, with the dollar slipping after U.S. President Donald Trump abruptly dismissed FBI Director James Comey.
Spot gold, which is priced in dollars, was up 0.1 percent at $1,221.47 per ounce at 0715 GMT. In the previous session, it dropped below its 100-day moving average to its lowest since March 15 at $1,213.81.
“We think that gold’s slide could perhaps extend to $1,180 to $1,200, an area of good technical support,” said INTL FCStone analyst Edward Meir.
“At that point, we should see some decent buying set in, as a roughly 10-percent correction from the highs should make holding the precious metal a more attractive risk-reward proposition.”
U.S. gold futures climbed 0.4 percent to $1,221.50 an ounce.