Gold futures edged lower on Wednesday, as expectations for a U.S.
rate hike in the coming months dampened the appeal of the precious
metal. Meanwhile, copper was boosted after positive China data.
Comex gold for December delivery dipped $2.10, or 0.19%, to trade at $1,124.70 a troy ounce during European morning hours.
Yesterday, gold declined $4.90, or 0.43%, after data showed U.S. consumer confidence improved unexpectedly in September.
The upbeat data spurred optimism over the health of the economy and supported the case for a rate hike this year.
The U.S. was to release the ADP jobs report for September at 8:15AM Eastern time, followed by the Chicago purchasing managers’ index, due for release at 9:45AM ET.
Market participants will also monitor Fed Chair Janet Yellen, who will give welcome remarks at the Federal Reserve's annual community banking conference in St. Louis later on Wednesday.
Elsewhere in the metal trading, copper futures bounced off the prior session's five-week low after data signaled China's consumer sentiment largely improved. Market players will now await a pair of manufacturing reports due out of China later in the week for further hints over the strength of the world's second largest economy.
Comex copper for December delivery added 2.08%, to trade at $2.298 a pound during morning hours in London.
A day earlier, copper fell to $2.225, a level not seen since August 24, before recovering to end at $2.251, little changed on the day.
Copper prices lost 13.4% in the third quarter amid indications China's economy is losing momentum, fueling fears over slackening demand for the industrial metal.
Data released earlier Wednesday, signaled that consumer sentiment in China improved in September to its highest level in over a year, as households shrugged off swings in the country's stock market.
The Westpac MNI China Consumer Sentiment Indicator climbed to 118.2 in September from 116.5 in August, marking the best reading since May 2014. Households appear to have responded positively to recent policy developments, including rate cuts last month and proposed reforms to the country's state-owned enterprises, Westpac said in a statement. Both measures of business conditions made solid gains in September with Business Conditions in One Year at the highest in nearly two years and the longer-term Business Conditions in Five Years also stronger, Westpac said.
Market players will await two more key reports from China.
On Thursday the official China manufacturing purchasing managers' index is expected to fall to 49.6 in September from 49.7 in August.
The final reading of the Caixin manufacturing purchasing managers’ index, also due Thursday, is expected to climb to 47.2 from a preliminary reading of 47.0, which was the lowest since March 2009. A reading below 50.0 indicates industry contraction.
