WASHINGTON (dpa-AFX) - Gold inched up slightly on Wednesday and the dollar held steady as poor economic readings from around the world raised hopes of less aggressive rate hikes by major central banks.
Spot gold edged up 0.1 percent to $1,749.76 per ounce, while U.S. gold futures were marginally higher at $1,762.60.
Data from S&P Global showed on Tuesday that U.S. manufacturing PMI declined to 51.3 in August from 52.2 in July and the services PMI plunged to 44.1 from 47.3.
Separate data from the Commerce Department showed that U.S. new home sales dropped 12.6 percent month-over-month to a seasonally adjusted 511,000 in July, the lowest reading since January 2016.
Federal Reserve Bank of Minneapolis President Neel Kashkari said on Tuesday inflation is much more embedded at a much higher level and the central bank has to be more aggressive to bring it under control.
On the other hand, Goldman Sachs Group Inc. Chief Economist Jan Hatzius said he expects Fed Chair Jerome Powell to lay out a case for slower increases at his upcoming Jackson Hole speech on Friday.
Focus is also on minutes of the ECB's last policy meeting due this week that may sound hawkish.
In economic releases, Canada wholesale sales and U.S. durable goods orders and pending home sales, all for July, are due in the New York session.
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