Investing.com - Metals prices traded mixed on Wednesday as a stronger dollar helped gold prices move off lows, but copper gave back gains from a day earlier on concerns about an ongoing wobble in China's economy.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange fell by $2.50, or 0.21%, to $1,211.90 troy ounce after trading as low as $1,207.00 intraday.
Gold prices traded in a narrow range as traders appeared reluctant to initiate large bets on the yellow metal, as data underlying the strength of U.S. economy, and expectations that further Federal Reserve rate hikes would likely lift the dollar from its current lull, weighed on sentiment.
Gross domestic product increased at a 4.2% annual rate in the April-June period, the Commerce Department said Wednesday in its penultimate estimate, beating economists' forecast of 4.0%, and ahead of the preliminary reading of 4.1% seen last month.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.08% to 94.55.
Dollar-denominated assets such as gold are sensitive to moves in the dollar. A fall in the dollar makes gold cheaper for holders of foreign currency and raises demand.
According to Investing.com's Fed Rate Monitor Tool, 100% of traders expect the Federal Reserve to raise rates in September.
The wider metals market traded mix as a Chinese state planning official stoked fears of slowdown in China, warning there were increasing risks to growth in the second half of the year.
Copper prices fell 0.85% to $2.73 a pound, giving back their gains from a day earlier, while zinc prices fell 0.46% at 2,516.25.
Aluminium prices rose 1.16% to 2,160.00, while nickel futures fell 1.38% to 13,447.50.
Silver futures fell 0.74% to $14.67 a troy ounce, while platinum futures gained 0.16% to $796.30.