Gold prices slipped on Wednesday after rising for three straight sessions as investors opted for riskier assets, with the dollar holding its gains on the back of upbeat US economic data. "There was a general increase in risk appetite, which boosted equities ... Conversely, there was less demand for safe-haven assets such as gold," said John Sharma, an economist with National Australia Bank.
Spot gold was down 0.3 percent at $1,343.31 per ounce at 0709 GMT, US gold futures for June delivery fell 0.2 percent to $1,346.30 per ounce. Gold prices had surged to $1,365.23 per ounce last week, their highest since January 25, on heightened tensions over Syria and US sanctions on Russia. "Historically, geopolitical tensions have a short-term impact on price movement, but overall it is the economy that determines prices," said Mark To, head of research at Hong Kong's Wing Fung Financial Group. Spot gold may retrace to a support level at $1,334 per ounce because it failed to break resistance at $1,350, said Reuters technical analyst Wang Tao.