WASHINGTON (dpa-AFX) - Gold prices edge higher on Wednesday, drawing support from data showing a slowdown in global manufacturing activity in July and Fitch's downgrade of the U.S. credit rating.
Spot gold edged up 0.3 percent to $1,949.22 per ounce, while U.S. gold futures were up 0.4 percent at $1,986.05.
The dollar was little changed despite Fitch's downgrade of the U.S. credit rating, citing fiscal deterioration and repeated debt ceiling standoffs.
Fitch Ratings downgraded the U.S. credit rating by one notch to AA+, citing high debt burden at the federal, state, and local levels and a concerning decline in governance standards over the last two decades.
The decision sparked a fiery rebuttal from the White House, with press secretary Karine Jean-Pierre saying the move 'defies reality.'
Treasury Secretary Janet Yellen called the change 'arbitrary and based on outdated data.'
The downgrade mainly reflects governance and medium-term fiscal challenges, but does not reflect new fiscal information, Goldman Sachs said.
In economic releases, U.S. MBA mortgage approvals data and ADP non-farm employment data for July are awaited in the New York session.
Investors also looked ahead to the Bank of England's interest rate announcement on Thursday and the U.S. nonfarm payrolls report due to be published on Friday for directional cues.
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