Investing.com - Metal prices steadied Wednesday as a weaker dollar helped copper and gold prices claw back some losses from a day earlier, though fears the U.S. will impose fresh tariffs on China as soon as Thursday curbed gains.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange rose by $2.10, or 0.18%, to $1,201.20 a troy ounce.
Gold prices hovered above the important $1,200 psychological level after a brief foray lower intraday, as the dollar ran out of steam following an uptick in the euro and pound. Traders, however, appeared reluctant to initiate large positions in the yellow metal as a widely expected Federal Reserve rate hike is just weeks away.
According to Investing.com's Fed rate monitor, 99.6% of traders expect the Federal Reserve to raise rates on Sept. 26.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.23% to 95.15.
Dollar-denominated assets such as gold are sensitive to moves in the dollar. A fall in the dollar makes gold cheaper for holders of foreign currency and raises demand.
The wider metals market, meanwhile, also enjoyed some reprieve from recent selling pressure, but weaker-than-expected services PMI data from Beijing reminded investors of China's economic struggles at a time when the U.S.-China trade war is expected to ramp up.
The Trump administration could impose a 25% tariff on $200 billion worth of Chinese imported goods after the comment period expires on Thursday.
Copper prices rose 0.65% to $2.60, while zinc prices tacked on 0.13% to 2,416.00.
Aluminium prices fell 0.07% to 2,066.50, while nickel futures lost 0.06% to 12,477.50.
Silver futures rose 0.28% to $14.22 a troy ounce, while platinum futures gained 0.66% to $783.30.