Gold futures edged higher in North American markets on Wednesday, as the U.S. dollar fell from its two-month high against a bunch of rival currencies.
The dollar tumbled as investors digested mixed data released this week to see whether the U.S. central bank will raise interest rates in the near term. Market players also held back as they looked ahead to the release of additional U.S. data for more indications on the Federal Reserve’s next move.
The U.S. Institute of Supply Management is to scheduled release its latest figures on manufacturing activity for the month of May at 10:00AM ET.
Other relevant data slated to be made public today include auto sales for the month of May, construction spending covering the month of April and the Federal Reserve’s Beige Book.
In New York, Gold for June delivery went up 0.16%, or $1.95 to trade higher at $1,219.45 as of 8:41AM ET.
Wednesday’s gains added to yesterday’s 0.07% rise.
Gold futures are up roughly 15% this year, but the precious metal has been weighed down by the prospect of a rate hike by the Federal Reserve.
Gold prices are especially vulnerable to changes in U.S. rates, as a rise would make the metal expensive and less appealing to yield-seeking investors.
Elsewhere in metals trading, silver futures for July delivery tacked on 0.29%, or 4.6 cents to trade slightly higher at $16.04 a troy ounce, while copper futures shed 1.36%, or 2.8 cents to $2.067 a pound.