Investing.com - Gold prices pushed higher on Wednesday, building on the previous session’s gains but investors remained wary as continued strength in the dollar looked likely to hold gains in check.
Gold for December delivery was up 0.30% to $1,225.70 on the Comex division of the New York Mercantile Exchange from $1,222.00 late Tuesday.
Gold prices gained ground on Tuesday, recovering from the lowest levels since January as the dollar eased after hitting four year highs against a basket of major currencies.
Demand for the dollar continued to be underpinned on Wednesday after data on Tuesday showed that the U.S. manufacturing sector expanded in September, matching the rate of growth seen in the previous month, which was the strongest in over four years.
The data added to the view that the ongoing economic recovery in the U.S. could prompt the Federal Reserve to raise interest rates sooner than markets expect.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was steady at 84.80, not far from Monday’s four year highs of 84.86.
Gold prices found some support amid increased safe haven demand as U.S. airstrikes in Syria stocked concerns over geopolitical risks. Asian equities were broadly lower overnight as the U.S. airstrikes curbed investor appetite for riskier assets.
Gold has traditionally been seen as a safe haven investment in times of global economic uncertainty.
Elsewhere in metals trading, Comex, silver for December delivery dipped 0.07% to $17.765 a troy ounce, while December copper added 0.39% to trade at $3.047 a pound.