Investing.com– Gold prices moved little in Asian trade on Wednesday, pressured by overnight strength in the dollar and Treasury yields as markets awaited more cues on U.S. monetary policy from several Federal Reserve officials this week.
While the yellow metal recovered sharply from five-month lows over the past two weeks, it has struggled to make headway in recent sessions due to pressure from renewed strength in the dollar and yields.
The traded near a six-month high on Wednesday, while hovered close to their strongest levels in over 20 years.
U.S. rates are widely expected to remain , diminishing the prospect of any major gains in gold as high rates push up the opportunity cost of investing in the yellow metal.
Lower chances of a U.S. recession this year have also weighed on gold, which usually benefits from a risk-off environment.
steadied at $1,926.70 an ounce, while expiring in December fell 0.1% to $1,951.65 an ounce by 00:27 ET (04:27 GMT).
Fed speakers in focus ahead of September meeting
Markets are now awaiting more cues on U.S. monetary policy from several Fed officials this week, starting with later on Wednesday.
, along with Fed open market committee members and are set to speak on Thursday.
The addresses come just before a communications blackout by the Fed, in anticipation of a . The central bank is widely expected to keep rates on hold, amid recent signs of cooling economic activity.
But the Fed is still expected to maintain its hawkish rhetoric, given that inflation remains sticky and the labor market robust. This notion is largely expected to weigh on gold and other metals for the remainder of the year.
Copper treads water with China in focus
Among industrial metals, copper prices fell slightly on Wednesday, with markets anticipating more economic cues from major importer China.
fell 0.1% to $3.8317 a pound.
China is set to release trade figures on Thursday, with analysts predicting smaller declines in and . But particular focus will be on the country’s commodity imports through August, given that local economic activity and the property market showed little signs of recovery.
Data released earlier this week showed that China’s grew at its slowest pace in eight months in August. While an earlier reading showed some resilience in the , overall business activity still deteriorated.
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