Investing.com - Gold futures edged higher on Wednesday, as a weaker U.S. dollar boosted the appeal of the precious metal.
On the Comex division of the New York Mercantile Exchange, gold for December delivery rose 0.13%, or $1.70, to trade at $1,286.90 a troy ounce during European morning hours.
Prices traded in a range between $1,281.10 and $1,287.40 an ounce. A day earlier, gold tacked on 0.49%, or $6.30, to settle at $1,285.20.
Futures hit a nine-week low of $1,273.40 on August 21 as market players priced in a greater risk of a sooner-than-expected hike in U.S. interest rates.
Prices were likely to find support at $1,273.40, the low from August 21 and resistance at $1,299.30, the high from August 20.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.18% to hit 82.54, as investors locked in gains from a recent rally.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
The greenback rallied to an 11-month high against the euro after European Central Bank President Mario Draghi told the Jackson Hole gathering last week that the central bank is ready to take more unconventional action if needed to stimulate a sluggish euro zone economy.
Meanwhile, the S&P 500 closed above the key 2000-level for the first time ever on Tuesday after upbeat data boosted optimism over the health of the U.S. economy.
The Conference Board said its index of U.S. consumer confidence rose to a seven-year high of 92.4 this month from a reading of 90.3 in July. Analysts expected the index to decline to 89.0 in August.
The robust consumer confidence report came after data from the U.S. Commerce Department showed that total durable goods orders, which include transportation items, surged by 22.6% last month, blowing past expectations for an increase of 7.5%.
Federal Reserve Chair Janet Yellen said at Jackson Hole that the U.S. economy is recovering and added the labor market is improving as well.
Also on the Comex, silver for December delivery advanced 0.2%, or 3.9 cents, to trade at $19.49 a troy ounce.
Elsewhere in metals trading, copper for December delivery shed 0.27%, or 0.9 cents, to trade at $3.204 a pound.