Investing.com – Gold prices were hovering near four-month highs on Wednesday, as sentiment on the U.S. dollar weakened ahead of retail sales and inflation reports due at the end of the week.
Comex were up 0.69% at $1,322.80 a troy ounce by 08:30 a.m. ET (12:30 GMT), just off a four-month peak of 1,328.60 hit earlier in the day.
The U.S. dollar received no support after official data on Wednesday showed that U.S. import prices in December, while export prices unexpectedly fell.
Market participants were now focusing on the release of due on Friday, for clues on the potential pace of rate hikes by the Federal Reserve.
The greenback had initially strengthened after San Francisco Fed President John Williams said on Saturday that the Fed should this year given that economy will benefit from tax cuts.
The comments came a day after Cleveland Fed President Loretta Mester said she expects about this year, thanks to solid U.S. economic growth and low unemployment.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.49% at 91.77, off the previous session’s one-week high of 92.36.
Gold is sensitive to moves in both U.S. rates and the dollar. A weaker dollar makes gold less expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
Elsewhere on the Comex, gained 0.68% to $17.12 a troy ounce.
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Source: Investing.com
