Investing.com - Gold prices were little changed near a three-week high in North American trade on Wednesday, as investors focused on the next set of U.S. data and Fed speakers for further guidance on the timing of the next interest rate hike.
Gold for December delivery on the Comex division of the New York Mercantile Exchange rose to a daily peak of $1,357.60 a troy ounce, the most since August 18. It was last at $1,353.95 by 8:25AM ET (12:25GMT), little changed on the day.
Job Openings and Labor Turnover data is due at 10:00AM ET (14:00GMT) Wednesday, while the Fed publishes its Beige Book on the economy at 2:00PM ET (18:00GMT).
Meanwhile, Richmond Fed chief Jeffrey Lacker and Kansas City Fed president Esther George are both due to testify at a hearing before the House Committee on Financial Services' subcommittee on Monetary Policy and Trade at 10:00AM ET (14:00GMT).
Both members are known for their hawkish stance but attention will most likely focus on George who is a voting member of the FOMC and was the only Fed official to vote against the July decision due to her preference to increase the rate in 25 basis points.
On Tuesday, gold surged $27.30, or 2.06%, after surprisingly weak U.S. service sector data reinforced expectations the Federal Reserve will hold off on raising rates at its policy meeting later this month.
The Institute of Supply Management (ISM) said its non-manufacturing purchasing manager's index fell from 55.5 in July to 51.4 in August, its weakest level since February 2010.
That followed last week's lackluster U.S. employment report as well as the ISM's manufacturing survey, which showed a shocking contraction in activity.
The recent string of disappointing data all but quashed talk of a near-term rate hike from the Fed. According to Investing.com's Fed Rate Monitor Tool, investors are pricing in a 15% chance of a rate hike at the Fed's September 20-21 meeting. For December, odds stood at around 47%.
Gold is sensitive to moves in U.S. rates. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
The reduced possibility for an imminent rate hike sent the dollar to a more than one-week low against major currencies such as the yen and euro.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 94.85 early Wednesday, after falling to 94.68 overnight, a level not seen since August 26.
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.