Investing.com - Gold prices rose slightly in early Asia on Thursday with the focus on next week's Federal Reserve meeting for signals on interest rates.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at $1,227.50 a troy ounce, up 0.05%, after hitting an overnight session low of $1,225.70 and off a high of $1,238.90.
Overnight, gold futures held steady on Wednesday after the dollar cooled its rally due to profit taking amid safe-haven demand for the yen, though uncertainty in Europe sent the yellow metal dipping into negative territory during afternoon trading on concerns the dollar may rise in the near future.
The yen rose on jitters over the outlook for China’s economy after Beijing set new restrictions on collateral for short-term loans, which weakened the greenback earlier and gave gold a boost.
The move fueled fears that the China may grow less than anticipated, which fueled safe-haven yen positions that came at the greenback's expense.
The yen often rises when Japanese stocks fall and growth-sensitive Australian and New Zealand dollars slide.
Still, the dollar's losses were seen as limited due to a surprise decision by the Greek government to bring forward a parliamentary vote for president to next week from February.
Markets were spooked by the risk of snap elections, which could take place if Prime Minister Antonis Samaras’s candidate is not approved by parliament, which could see the anti-bailout Syriza party take power.
Investors were looking ahead to next week’s policy statement from the Fed amid speculation that policymakers could drop an assurance that interest rates will stay low for a "considerable time."
Silver futures for March delivery fell 0.07% at $17.075 a troy ounce. Copper futures for March delivery were flat at $2.895 a pound.