Investing.com - Gold prices drifted lower in early Asia on Thursday in cautious trade as investors await views from the U.S. Fed chief at the end of the week to set the tone on chances of a rate hike this year.
Gold for December delivery on the Comex division of the New York Mercantile Exchange eased 0.06% to $1,328.95 a troy ounce, while silver futures fell 0.13% to $18.532 a troy ounce. Copper futures for September delivery on the Comex eased 0.05% to $2.079 a pound.
Overnight, gold prices were slightly lower in North American hours on Wednesday, remaining in a familiar trading range as market players looked ahead to a highly anticipated speech from Federal Reserve Chair Janet Yellen at the end of this week.
Fed Chair Yellen may provide fresh clues on the timing of the next U.S. rate hike at a speech during an annual meeting of central bankers in Jackson Hole, Wyoming, on Friday.
The annual Fed symposium has sometimes been used by Fed chairs to make important policy statements.
Odds for a rate hike as early as next month mounted following hawkish comments from several Fed officials in recent days, including Fed Vice Chair Stanley Fischer and New York Fed President William Dudley.
According to Investing.com's Fed Rate Monitor Tool, investors are pricing in an 18% chance of a rate hike by September, up from 12% at the start of last week.
The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.