08.08.201814:29:00UTC+00Gold Edges Higher As Dollar Retreats

Gold prices edged higher on Wednesday, gaining for a second straight day as the dollar weakened slightly against major currencies.

Traders chose to pick up the yellow metal after from government bond yields fell by about 0.5%. The dollar index declined by 0.1%.

Gold futures for December ended up $2.70, or 0.2%, at $1,221 an ounce. On Tuesday, gold futures ended up $0.30, or less than 0.1%, at $1218.30 an ounce.

However, it was not a smooth sail for the yellow metal today, as the greenback held its gains early on in the session after a Federal Reserve official spoke about the need for gradual rate hikes.

With the Fed most likely to hike interest rates twice this year, and announce two more hikes in the coming year, the outlook for gold remains a bit uncertain, at least for now.

Silver futures for September settled at $15.432 an ounce.