Gold prices inched up on Wednesday, hovering near a four-month high on a weaker dollar, while investors awaited minutes from the U.S. Federal Reserve‘s last policy meeting as inflation worries persist.
Spot gold was up 0.1% at $1,870 per ounce by 0044 GMT, after hitting its highest since Jan. 29 at $1,874.80 in the previous session. U.S. gold futures rose 0.1% to $1,869.60 per ounce.
The dollar index held close to a near three-month low against its rivals, making gold less expensive for other currency holders.
Market participants are waiting for the release of minutes from the U.S. Fed‘s April 27-28 policy meeting at 1800 GMT for further clarity on economic recovery and policymakers’ view on inflation.
Data on Tuesday showed U.S. homebuilding fell more than expected in April, likely pulled down by soaring prices for lumber and other materials.
Concerns over rising inflation intensified as U.S. consumer prices rose 4.2% in April from a year earlier, the fastest increase in more than a decade.
The U.S. central bank has pledged to keep interest rates low until the economy reaches full employment and Fed officials have repeatedly maintained they expect any rise in inflation to be short-lived.
World powers, including the United States, urged a truce in the conflict as Israel bombarded Gaza with air strikes and Palestinian militants resumed cross-border rocket fire on Tuesday.
Palladium gained 0.2% to $2,907.09 per ounce, silver eased 0.2% to $28.15, while platinum edged 0.2% higher to $1,220.50.