Investing.com - Gold prices edged higher on Wednesday, but gains looked likely to remain limited as expectations for an interest rate increase by the Federal Reserve next week weighed on the precious metal.
Gold was up 0.32% to $1,173.85 a troy ounce by 10:13 GMT. Prices fell to lows of $1,157.00 on Monday, a level not seen since February 5.
Gold remained under pressure ahead of an expected interest rate hike by the U.S. central bank at its December 13-14 meeting.
According to Investing.com's Fed Rate Monitor Tool, 97.8% of traders expect the Fed to raise interest rates at the meeting.
Data on Tuesday showing that U.S. factory orders rose at the fastest rate in almost one-and-a-half years in October added to signs that the manufacturing sector is recovering and fed into expectations for a rate hike.
Both a strong dollar and higher interest rates are typically bearish for gold, which is denominated in dollars and struggles to compete with yield-bearing assets when borrowing costs rise.
The dollar was holding steady against a basket of six other major currencies, with the U.S. dollar index at 100.52.
The index surged to a thirteen-and-a-half year high of 102.05 last month, while gold slumped almost 8%, as U.S. bond yields climbed on expectations of higher fiscal spending and a faster pace of monetary tightening under the Trump administration.
Elsewhere in precious metals trading, silver for March delivery was at $16.83 an ounce, while copper for March delivery traded at $2.69 a pound.
Palladium was down 0.62% to $729.85 an ounce and platinum slid to $933.7 after hitting more than three-week highs in the previous session.