Investing.com - Gold futures were higher in European trade on Thursday, after falling to a seven-week low overnight as investors continued to factor in an increased chance of a near-term U.S. interest rate rise.
Odds of a Fed rate hike for June stood at nearly 32% Thursday morning, according to futures markets. July odds were at about 60%.
Market players will pay close attention to comments from a pair of Fed officials later in the day for further hints on the timing of a U.S. rate hike.
St. Louis Fed President James Bullard speaks in Singapore at 10:10GMT, or 6:10AM ET, and Fed Governor Jerome Powell speaks on the economy and monetary policy at 16:00GMT, or 12:00PM ET, in Washington DC.
Besides the Fed speakers, traders will focus on weekly jobless claims figures and durable goods orders at 12:30GMT, or 8:30AM ET, and pending home sales at 14:00GMT, or 10:00AM ET.
The big Fed event of the week will be an appearance by Fed Chair Janet Yellen on Friday at Harvard University. She could use the speech to reinforce expectations that the central bank might raise interest rates as early as next month, or July.
Gold for June delivery on the Comex division of the New York Mercantile Exchange tacked on $4.95, or 0.4%, to trade at $1,228.85 a troy ounce by 07:11GMT, or 3:11AM ET.
On Wednesday, gold sank to an intraday low of $1,217.70, a level not seen since April 6, on hints the Fed is getting closer to raising interest rates.
Gold futures are down more than 5% so far in May as recent comments from Fed officials as well as minutes of the Fed's April meeting have convinced many analysts and investors that a rate hike in June or July is a real possibility.
Elsewhere on the Comex, silver futures for July delivery rose 18.9 cents, or 1.16%, to trade at $16.45 a troy ounce during morning hours in London, while copper futures inched up 1.5 cents, or 0.74%, to $2.117 a pound.