WASHINGTON (dpa-AFX) - Gold prices moved higher on Wednesday as the dollar turned weak with investors hoping for an interest rate cut by the Federal Reserve in September.
The dollar index dropped to 105.00, losing about 0.1%.
Gold futures for July ended up by $12.10 or about 0.51% at $2,372.20 an ounce.
Silver futures for July ended down $0.045 or about 0.15% at $30.727 an ounce, while Copper futures for July climbed to $4.5815 per pound, gaining $0.0035.
During congressional testimony, Federal Reserve Chair Jerome Powell said more 'good data' would strengthen the central bank's confidence inflation is moving sustainably toward its 2 percent target and lead to a potential interest rate cut.
Powell also warned of the risk that leaving interest rates at an elevated level for too long could jeopardize economic growth.
'In light of the progress made both in lowering inflation and in cooling the labor market over the past two years, elevated inflation is not the only risk we face,' he said. 'Reducing policy restraint too late or too little could unduly weaken economic activity and employment.'
Traders now await U.S. consumer price inflation data, due on Thursday.
Economists expect the annual rate of consumer price growth to slow to 3.1% in June from 3.3% in May, while the annual rate of core consumer price growth is expected to hold at 3.4%.
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