Investing.com - Gold futures struggled for direction on Wednesday, as market participants continue to speculate over the timing of a U.S. rate hike.
Investors have been trying to gauge when the Federal Reserve will raise interest rates for the first time in nearly a decade after recent economic reports offered a mixed picture of the U.S. economic growth.
Gold for December delivery on the Comex division of the New York Mercantile Exchange shed $3.40, or 0.29%, to trade at $1,174.10 a troy ounce during European morning hours.
A day earlier, gold tacked on $4.70, or 0.4%, as a softer dollar and losses in U.S. equity markets boosted its appeal as a hedge.
Dollar weakness usually benefits gold, as it increases the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Gold rallied to a four-month peak of $1,191.70 last week amid speculation the U.S. central bank will not raise rates until sometime next year, with weak economic reports on retail sales and manufacturing activity feeding that view.
However, upbeat data on inflation, consumer sentiment and housing starts prompted investors to pare bets that Fed policymakers will wait until next year to hike rates.
The timing of a Fed rate hike has been a constant source of debate in the markets in recent months. The U.S. central bank has two more scheduled policy meetings before the end of the year: next week and in December.
Elsewhere in metals trading, copper for December delivery on the Comex division of the New York Mercantile Exchange slumped 2.4 cents, or 1.01%, to hit $2.341 a pound during morning hours in London, as persistent worries about future demand from top consumer China weighed.
Copper prices have been under heavy selling pressure in recent weeks as fears of a China-led global economic slowdown spooked traders and rattled sentiment.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.