Investing.com– Gold prices rose in Asian trade on Wednesday, seeing some relief as the dollar retreated on some positive comments from Federal Reserve Chair Jerome Powell.
But the yellow metal still remained within a trading range established through most of June, as anticipation of more cues on U.S. interest rates kept traders biased towards the dollar.
Spot gold rose 0.1% to $2,332.16 an ounce, while gold futures expiring in August rose 0.3% to $2,341.25 an ounce by 23:55 ET (03:55 GMT).
Gold rises, but payrolls, Fed cues limit gains
Strength in gold came tracking an overnight decline in the dollar, after the Fed’s Powell flagged progress towards bringing down inflation.
But Powell also warned that the central bank still needed more confidence to begin trimming interest rates.
This notion, coupled with anticipation of more key cues on the U.S. economy, kept gains in gold and other metals limited.
Focus is now on the minutes of the Fed’s June meeting, due later on Wednesday, as well as addresses by other Fed officials in the coming days.
More closely watched will be nonfarm payrolls data due this Friday, which is set to offer definitive cues on the labor market.
Gold saw some relief in recent sessions as traders added to bets that the Fed will begin trimming interest rates from September. But persistent concerns over inflation and a strong labor market stymied the yellow metal’s advance, keeping it trading around the low-$2,300s for nearly a month.
Other precious metals rose on Wednesday. Platinum futures rose slightly to $1,012.05 an ounce, while silver futures jumped 1% to $29.960 an ounce.
Copper gains limited by weak China PMI
Among industrial metals, copper prices rose on Wednesday, taking advantage of a softer dollar. But gains in the red metal were constrained by weak economic data from top importer China.
Benchmark copper futures on the London Metal Exchange rose 0.4% to $9,708.0 a tonne, while one-month copper futures rose 0.3% to $4.4407 a pound.
Private purchasing managers index data from China showed the service sector grew less than expected in June, ramping up concerns over a slowing economic recovery in the country.
Concerns over China saw copper prices nursing steep declines through June.
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