Gold dipped almost 1 percent on Wednesday after a firmer US dollar spurred selling, with investors turning their attention to the results of stress tests on US banks that could potentially benefit the metal. The US government stress test results are due on Thursday and could show about 10 of the 19 largest US banks under review would need to raise more capital.
A source familiar with the results said Bank of America was deemed to need an additional $34 billion in capital. Spot gold was quoted at $902.50 ounce, down $0.70 from New York's notional close. Gold rallied to $915.45 on Tuesday, its highest since April 27, before slipping as the dollar changed course and rose against the euro.
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