WASHINGTON (dpa-AFX) - Gold prices were a tad higher on Wednesday, as improved sentiment in financial markets weighed on the dollar.
Spot gold edged up 0.1 percent to $1,893.13 per ounce, while U.S. gold futures were up 0.1 percent at $1,803.70.
The dollar softened following comments from several Federal Reserve officials playing down the possibility of aggressive rate hikes this year.
Philadelphia Fed President Patrick Harker said that he supported four 25 basis point rate hikes for this year, but a 50 basis point move is not preferred.
Atlanta Fed President Raphael Bostic said on Tuesday that there is a real risk of inflation expectations drifting higher and thus an action to reduce accommodation is required soon.
St. Louis Federal Reserve President James Bullard advocated lifting rates at the meetings in March and May, but opposed the idea of a half-percentage point move next month.
Meanwhile, Eurozone inflation accelerated further in January on energy prices, preliminary data from Eurostat showed earlier today.
Inflation rose to a record 5.1 percent in January from 5.0 percent in December. Economists had forecast the rate to ease to 4.4 percent.
U.S. ADP private payrolls data for January is scheduled for release at 8:15 am ET.
As inflation concerns mount, investors await the ECB and BoE policy meetings on Thursday for more clues on the outlook for monetary policy.
The European Central Bank is unlikely to announce policy tightening anytime soon while investors await a second consecutive rate hike from the Bank of England.
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