Gold edges up despite Fed rate hike concerns

Gold prices inched higher in Asian trade on Wednesday, but gains were limited as recent comments from Federal Reserve officials dampened hopes for interest rate cuts, as reported by Investing.com financial platform.

While the yellow metal benefitted slightly from safe-haven demand amid the ongoing Israel-Hamas conflict, renewed concerns about rising US interest rates and a stronger dollar offset the buying pressure.

Spot gold rose 0.2 per cent to $2,317.70 per ounce, while June gold futures remained steady at $2,325.40 per ounce. However, spot prices remain over $100 below their record highs set in late April.

Gold prices found little support from a recent dip in the dollar, as the greenback rebounded on Tuesday. This followed statements from several Fed officials suggesting the central bank is more likely to maintain current interest rates in 2024.

Other precious metals showed a mixed response amid the pressure from potential US rate hikes.

Platinum futures remained flat at $988.35 per ounce, while silver futures gained 0.3 per cent to $27.635 per ounce.

The copper market awaits key trade data from China on Thursday, which is expected to offer further insights into the country’s metal demand.