01.03.202309:08:00UTC+00Gold Edges Higher On Weaker Dollar

Gold inched higher on Wednesday as the dollar weakened on improved risk sentiment after the release of upbeat Chinese data.

Spot gold rose 0.3 percent to $1,831.80 per ounce, while U.S. gold futures were marginally higher at $1,838.55.

The dollar is coming under pressure after key measures of Chinese manufacturing and non-manufacturing showed a strong recovery in February.

China's official manufacturing Purchasing Managers' Index (PMI) shot up to 52.6 from 50.1 in January, smashing expectations after the country abruptly lifted COVID-19 curbs.

China's nonmanufacturing activity also grew at a faster pace in February and the private sector index from Caixin/S&P showed factory activity rising for the first time in seven months, helping ease investor fears over rising interest rates.

Elsewhere in Europe, the euro zone final manufacturing PMI for February came in at 48.5, matching the initial estimate. Separate data showed Germany's jobless rate held stable at low levels in February.

U.S. manufacturing data will be in focus in the New York session.