Gold turned higher on Wednesday, giving up earlier weakness as futures looked to tally a fifth consecutive climb, extending their rise to their highest level in four months.
Moves for the metal came as U.S. benchmark stock indexes declined ahead of minutes from the Federal Reserves April meeting.
Gold prices are still likely to continue to move higher, and the only event which matter now is the upcoming Fed minutes, said Naeem Aslam, chief market analyst at AvaTrade.
The Fed will release minutes from its most recent policy meeting in April at 2 p.m. Eastern Time, shortly after gold futures settle for the session. Investors will look for clues on how the central bank will address evidence of pricing pressures building in the economy, which officials have so far described as transitory.
If the Fed shows no hawkish side, we could see further gains for the gold price, said Aslam.
June gold rose 22.80, or 1.2, to 1,890.80 an ounce after trading as high as 1,891.30. Prices were on track for a fifth straight climb. The modest move up on Tuesday was enough to mark the most active contracts highest finish since Jan. 7, FactSet data show.
The minutes are expected to reiterate the Feds dovish stance, highlighting any rise in inflation as transitory, wrote Sophie Griffiths, market analyst at Oanda, in a note.
Buying in gold had been supported by waning appetite for risk, weakness in the U.S. dollar, represented by the popular ICE U.S. Dollar Index hitting a nearly…