Investing.com - Gold prices rose in U.S. trading on Wednesday on a weaker dollar as well as on reports of rising physical demand in China.
A weaker dollar often pushes gold prices higher, as the greenback and the yellow metal tend to trade inversely with one another.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were up 0.61% at USD1,388.15 a troy ounce in U.S. trading on Wednesday, up from a session low of USD1,379.65 and down from a high of USD1,394.25 a troy ounce.
Gold futures were likely to test support USD1,373.25 a troy ounce, Tuesday's low, and resistance at USD1,401.05, Tuesday's high.
Solid consumer confidence and housing data in the U.S. sent the dollar surging on Tuesday amid sentiments that the Federal Reserve may be closer to winding down stimulus measures, including its monthly USD85 billion bond-buying program.
Stimulus tools weaken the greenback to spur recovery, making gold an attractive hedge.
Profit taking on the dollar, however, kicked in on Wednesday, which gave investors room to take up nicely priced positions in gold.
A rising yen also took steam out of the dollar and further bolstered gold's appeal.
In Japan earlier, Bank of Japan Governor Haruhiko Kuroda said the financial system is stable, which investors interpreted as a sign that Tokyo may hold off on loosening policy further.
Reports that physical demand in China may be picking up sent prices rising as well.
Elsewhere on the Comex, silver for July delivery was up 0.58% at USD22.322 a troy ounce, while copper for July delivery was down 0.88% and trading at USD3.286 a pound.
A weaker dollar often pushes gold prices higher, as the greenback and the yellow metal tend to trade inversely with one another.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were up 0.61% at USD1,388.15 a troy ounce in U.S. trading on Wednesday, up from a session low of USD1,379.65 and down from a high of USD1,394.25 a troy ounce.
Gold futures were likely to test support USD1,373.25 a troy ounce, Tuesday's low, and resistance at USD1,401.05, Tuesday's high.
Solid consumer confidence and housing data in the U.S. sent the dollar surging on Tuesday amid sentiments that the Federal Reserve may be closer to winding down stimulus measures, including its monthly USD85 billion bond-buying program.
Stimulus tools weaken the greenback to spur recovery, making gold an attractive hedge.
Profit taking on the dollar, however, kicked in on Wednesday, which gave investors room to take up nicely priced positions in gold.
A rising yen also took steam out of the dollar and further bolstered gold's appeal.
In Japan earlier, Bank of Japan Governor Haruhiko Kuroda said the financial system is stable, which investors interpreted as a sign that Tokyo may hold off on loosening policy further.
Reports that physical demand in China may be picking up sent prices rising as well.
Elsewhere on the Comex, silver for July delivery was up 0.58% at USD22.322 a troy ounce, while copper for July delivery was down 0.88% and trading at USD3.286 a pound.