Investing.com - Gold prices edged higher on Wednesday, as investors turned their attention to the release of minutes from the Federal Reserve's latest policy meeting later in the session as well as key inflation data for further hints on the timing of a U.S. rate hike.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange tacked on $6.30, or 0.56%, to trade at $1,123.20 a troy ounce during European morning hours, not far from a one-month high of $1,126.30 hit on August 13.
Investors will be focusing on Wednesday’s minutes of the July Fed meeting, which it was hoped would provide more clarity on its plans to hike short-term interest rates for the first time since 2006.
Traders are also looking ahead to U.S. inflation data later in the session. The Commerce Department is expected to report at 8:30AM ET that consumer prices rose by 0.2% in July, after increasing 0.3% in June. Core inflation is forecast to gain 0.2%, after rising 0.2% a month earlier.
A day earlier, gold shed $1.50, or 0.13%, to end at $1,116.90 after data showing that U.S. housing starts rose to an almost eight-year high in July supported the case for higher interest rates.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 96.74 early Wednesday, down 0.25% for the day.
Some traders believe the Fed could postpone raising interest rates as soon as September in response to China’s shock currency devaluation move, as officials are likely to remain concerned over global growth and inflation pressures.
Gold fell to a five-and-a-half year low of $1,072.30 on July 24 amid speculation the Fed will raise interest rates in September for the first time since 2006. But prices have since rebounded approximately 4.5% on hopes of a delayed U.S. rate hike.
Elsewhere in metals trading, copper for September delivery on the Comex division of the New York Mercantile Exchange inched up 0.5 cents, or 0.23%, to trade at $2.292 a pound during morning hours in London.
Copper plunged to a six-year low of $2.265 on Tuesday as steep declines on Chinese stock markets dampened appetite for the red metal.
The Shanghai Composite took investors on another volatile ride on Wednesday, tumbling by as much as 5% after the open, only to turn positive after the midday break to end up 1.2%.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.