Investing.com – Gold prices moved higher on Thursday, buoyed by a slightly softer dollar but the upside for the precious metal looked likely to remain limited ahead of Friday’s U.S. employment report, which could provide fresh impetus to the dollar.
for June delivery on the Comex division of the New York Mercantile Exchange were up $4.40 or 0.34% to $1,310.20 a troy ounce by 03:57 AM ET (07:57 AM GMT).
Prices of the precious metal hit a low of $1,302.40 on Tuesday, which was the weakest level since March 1.
The dollar backed off four-month highs against a currency basket on Thursday, but remained supported after the indicated that it is on track to keep gradually raising interest rates.
The , which measures the greenback’s strength against a basket of six major currencies, eased 0.15% to 92.45. A weaker U.S. currency makes dollar denominated gold less expensive for overseas buyers.
The Fed, in a statement released after its two-day policy meeting acknowledged a recent pick-up in inflation, leaving it on track to deliver its second rate increase of the year when it meets in June.
Expectations for a faster pace of rate hikes tend to be bearish for gold, which struggles to compete with yield bearing assets when interest rates rise.
In other precious metal trade, were up 0.61% to $16.47, while added on 0.75% to trade at $900.50.
Among base metals, gained 1.25% to $3.108 a pound.
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Source: Investing.com
