RTTNews - Gold prices moved slightly higher on Wednesday, erasing early losses after the dollar pulled back against the euro and pound. The metal posted nominal gains for a second straight session after two days of sharp declines.

August-stamped gold futures closed at $936 an ounce, up $3.80 on the session. The metal moved as high as $938.90 and as low as $928.40 in early trading.

The dollar moved lower against the euro in afternoon trading, moving further away from the 3 1/2-week high it reached yesterday. The greenback also backed off an eight-day high against the pound.

Investors also mulled over the Obama administration's financial reform proposals. Seeking to prevent a recurrence of the recent financial meltdown, Obama laid out a sweeping agenda for regulatory reform. The president proposed granting the Federal Reserve the authority to scrutinize firms that are large enough to pose a systemic risk to the financial markets.

On the economic front, Labor Department data showed that consumer prices edged up 0.1 percent in May after coming in unchanged in April. Economists had been expecting a somewhat more substantial increase in prices of about 0.3 percent.

Meanwhile, crude oil prices closed a choppy session up 56 cents at $71.03 per barrel.

Gold inched up $4.70 on Tuesday after it had dropped a combined $34.50 in the previous two sessions. Overall, the metal has been trending lower since reaching as high as $992.10 earlier this month.

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