Investing.com - Gold futures edged higher early Thursday, as investors looked ahead to a speech by Federal Reserve Chair Janet Yellen scheduled later in the day for additional clarity on the bank’s decision last week to leave interest rates on hold.
Gold for December delivery on the Comex division of the New York Mercantile Exchange inched up $3.70, or 0.33%, to trade at $1,135.20 a troy ounce during European morning hours.
A day earlier, gold tacked on $6.70, or 0.6%, as steep losses in global equity markets boosted the appeal of the precious metal.
Federal Reserve Chair Janet Yellen is to speak on inflation dynamics and monetary policy at an event at the University of Massachusetts at 5:00PM ET on Thursday.
Market players will scrutinize her comments after the U.S. central bank left interest rates unchanged last week due to concerns over soft inflation and the effects of recent market volatility on the U.S. economy.
Besides Yellen's speech, investors will focus on a few key pieces of U.S. data due later in the day, including jobless claims, durable goods and new home sales, for indications on the strength of the economy and the likelihood of a near-term interest rate hike.
The timing of a rate hike in the U.S. has been a constant source of debate in the markets in recent months.
Gold fell to a five-and-a-half year low of $1,072.30 on July 24 amid speculation the Fed will raise interest rates for the first time since 2006 at some point this year.
Most market experts believe the Fed will begin raising rates in December after keeping policy steady last week.
Elsewhere in metals trading, copper for December delivery on the Comex division of the New York Mercantile Exchange rose 0.9 cents, or 0.41%, to trade at $2.305 a pound.
Futures fell to a three-week low of $2.294 earlier in the session as concerns over the health of China's economy dampened appetite for the red metal.
Private sector data released Wednesday showed that manufacturing activity in China contracted at the fastest pace since the global financial crisis, fueling fears over slackening demand for the industrial metal.
The preliminary reading of the Caixin manufacturing purchasing managers’ index fell to 47.0 in September from 47.3 a month earlier. It was the lowest reading since March 2009.
The gloomy figure added to concerns over the health of the world's second largest economy.
Copper prices have been under heavy selling pressure in recent weeks as fears of a China-led global economic slowdown spooked traders and rattled sentiment. Prices of the red metal sank to a six-year low of $2.202 on August 24.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.