Investing.com - Gold prices were steady on Wednesday, after gains in the previous session but fresh gains were held in check amid a rise in equity markets after data indicating that China’s economy has stabilized.
Gold for December delivery on the Comex division of the New York Mercantile Exchange was last at $1,262.45 a troy ounce.
Asian shares notched up a second day of gains on Wednesday after data showing that China’s economy expanded 6.9% in the third quarter, matching economists’ forecasts.
The data bolstered market sentiment, curbing safe haven demand for the precious metal.
The dollar continued to hold below seven-month highs against the other major currencies after data on Tuesday showing that while the cost of living in the U.S. rose at the fastest pace in five months in September the rate of underlying inflation moderated.
The U.S. dollar index, which measures the greenback's value against a basket of six major currencies, was at 97.85. Gold is priced in U.S. dollars and becomes cheaper to holders of other currencies when the dollar weakens.
The inflation data fueled speculation over whether the world's largest economy is strong enough to withstand an increase in borrowing costs before the end of the year.
Rising inflation would be a catalyst to push the Fed toward raising interest rates.
Markets are currently pricing in around a 64% chance of a rate hike at December's meeting, according to Investing.com's Fed Rate Monitor Tool.
On Monday, Fed Vice Chair Stanley Fischer said the U.S. central bank is "very close" to its employment and inflation targets, while Boston Fed President Eric Rosengren said the current levels of jobs and inflation support the case for a rate increase soon.
Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
Also on the Comex, silver futures for December delivery were at $17.61 a troy ounce during morning hours in London, while copper futures traded at $2.101 a pound.