Investing.com — Gold prices rose in Asian markets on Wednesday, but took some relief from a weakening dollar following some positive comments from Federal Reserve Chairman Jerome Powell.
However, traders leaned towards the dollar on expectations of further indications on US interest rates, while gold remained within the trading range established for most of June.
As of 23:55 ET (03:55 GMT), it was up 0.1% to $2,332.16 an ounce, while August maturities were up 0.3% to $2,341.25 an ounce.
Gold rises, but gains are held back by jobs data and Fed data
Gold rose after an overnight drop in gold prices after Fed Chairman Powell signalled progress towards taming inflation.
But Powell also warned that the central bank needs more credibility before it starts cutting interest rates.
This belief, combined with hopes of further important data on the U.S. economy, limited gains in gold and other metals.
Attention now turns to the Fed’s June meeting, scheduled for later Wednesday, and speeches by other Fed officials over the coming days.
More attention will be focused on data due to be released this Friday, which will provide crucial clues about the labor market.
Gold has seen some relief in recent trading on growing expectations that the Fed will begin raising interest rates, but persistent concerns about inflation and the strength of the labor market have held back the metal’s gains, keeping it trading in the low $2,300 range for nearly a month.
Other precious metals rose on Wednesday, rising slightly to $1,012.05 an ounce, up 1 percent to $29.960 an ounce.
Weak China PMI limits copper price gains
Among industrial metals, copper prices rose on Wednesday, benefiting from a weaker dollar, but gains were limited by weak economic data from China, the largest importer.
The London Metal Exchange’s benchmark price rose 0.4 percent to $9,708.0 a tonne, while one-month contracts rose 0.3 percent to $4.4407 a pound.
China’s private purchasing managers’ index data showed growth in June was weaker than expected, raising concerns about a slowdown in the country’s economic recovery.
Copper prices fell sharply through June on concerns about China.
