Early Thursday, gold futures were higher as market players were jittery before a speech by Federal Reserve Chairwoman Janet Yellen due later in the day. Markets are waiting for clarity on the bank's decision last week to keep interest rates unchanged.
Comex gold for December delivery rose $2.50, or 0.22%, to trade at $1,134.00 a troy ounce during European morning hours.
Yesterday, gold added $6.70, or 0.6%, as steep losses in global equity markets boosted the appeal of the precious metal.
Federal Reserve Chair Janet Yellen is to speak on inflation dynamics and monetary policy at an event at the University of Massachusetts at 3:00PM ET today.
Market players will scrutinize her comments after the U.S. central bank left interest rates unchanged last week due to concerns over soft inflation and the effects of recent market volatility on the U.S. economy.
Market players will also await a few key pieces of U.S. data due later in the day, including jobless claims, durable goods and new home sales, for indications on the strength of the economy and the likelihood of a near-term interest rate hike.
Elsewhere, Comex copper for December delivery rose 0.013 cents, or 0.57%, to trade at $2.309 a pound.
Earlier in the session, futures hit a three-week low of $2.294 earlier as concerns over the health of China's economy dampened appetite for the red metal.
Private sector data released Wednesday signaled that manufacturing activity in China contracted at the fastest pace since the global financial crisis, fueling fears over slackening demand for the industrial metal.
The preliminary reading of the Caixin manufacturing purchasing managers’ index fell to 47.0 in September from 47.3 a month earlier. It was the lowest reading since March 2009.
The gloomy figure added to concerns over the health of the world's second largest economy.
In recent weeks, copper prices have been under heavy selling pressure as fears of a China-led global economic slowdown spooked traders and rattled sentiment. Prices of the red metal sank to a six-year low of $2.202 on August 24.
