Investing.com - Gold prices snapped a ten-day losing streak on Thursday, but gains remained limited amid expectations the Federal Reserve will hike interest rates at its September policy meeting.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange tacked on $4.20, or 0.38%, to trade at $1,095.70 a troy ounce during European morning hours.
A day earlier, gold fell to $1,085.60 before recovering mildly to close at $1,091.50, down $12.00, or 1.09%. Prices of the precious metal plunged to a five-year low of $1,080.00 on Monday.
Gold has been under heavy selling pressure in recent months amid speculation the Fed will raise interest rates for the first time in eight years as soon as September.
Gold, which yields nothing and costs money to hold, is seen as a less attractive investment during times of rising interest rates.
Also on the Comex, silver futures for September delivery inched up 3.2 cents, or 0.22%, to trade at $14.76 a troy ounce, while copper for September delivery added 0.5 cents, or 0.19%, to trade at $2.433 a pound.
Demand for the U.S. dollar remained supported after data on Wednesday showed that U.S. existing home sales rose to an eight-and-a-half year high in June, boosting optimism over the health of the economy and supporting the case for a rate hike this year.
Existing home sales increased by 3.2% to 5.49 million units last month, compared to expectations for a 1.2% rise to 5.40 million units.
The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last at 97.51, not far from Tuesday's three-month high of 98.30.
A stronger dollar saps demand for raw materials as an alternative investment and makes metals priced in the currency more expensive in terms of other monies.
Meanwhile, the euro was little changed after Greek lawmakers passed a second set of crucial reforms on Wednesday, leading the way to the country's third bailout.
A majority of Greek lawmakers voted in favor of a second set of reforms late Wednesday, signaling that negotiations on an €86 billion European Union bailout can begin. The country is aiming for a deal by the middle of next month.