Investing.com – Gold futures edged higher on Wednesday, advancing for the first time in four days as a broadly weaker U.S. dollar and strong physical demand from Asia supported prices.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,495.15 a troy ounce during late Asian trade, climbing 0.75%.
It earlier rose as much as 0.85% to a daily high of USD1,496.55 a troy ounce.
The greenback came under pressure after disappointing data on U.S. housing starts and factory output on Tuesday underlined the view that the Federal Reserve would keep its loose monetary policy.
Traders were also looking ahead to the release of the minutes of the Fed’s most recent Open Market Committee meeting, in order to get more clarity on U.S. interest rate policy.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.23% to hit 75.32.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Meanwhile, strong physical demand from India supported prices as one of the major gold-buying festivals of Akshaya Tritiya began and India's wedding season gathered pace. India is the world’s largest gold consumer.
Also supporting prices were ongoing concerns over Greece’s debt after Head Euro Zone Finance Minister Jean-Claude Juncker said Tuesday that Greece could see a “soft restructuring” of its debt if Athens agreed to undertake major reforms and speed up plans to privatize state holdings.
Elsewhere, silver for July delivery jumped 2.3% to trade at USD34.70 a troy ounce during late Asian trade, after rising by as much as 2.75% to a two-day high of USD34.87.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,495.15 a troy ounce during late Asian trade, climbing 0.75%.
It earlier rose as much as 0.85% to a daily high of USD1,496.55 a troy ounce.
The greenback came under pressure after disappointing data on U.S. housing starts and factory output on Tuesday underlined the view that the Federal Reserve would keep its loose monetary policy.
Traders were also looking ahead to the release of the minutes of the Fed’s most recent Open Market Committee meeting, in order to get more clarity on U.S. interest rate policy.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.23% to hit 75.32.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Meanwhile, strong physical demand from India supported prices as one of the major gold-buying festivals of Akshaya Tritiya began and India's wedding season gathered pace. India is the world’s largest gold consumer.
Also supporting prices were ongoing concerns over Greece’s debt after Head Euro Zone Finance Minister Jean-Claude Juncker said Tuesday that Greece could see a “soft restructuring” of its debt if Athens agreed to undertake major reforms and speed up plans to privatize state holdings.
Elsewhere, silver for July delivery jumped 2.3% to trade at USD34.70 a troy ounce during late Asian trade, after rising by as much as 2.75% to a two-day high of USD34.87.