Investing.com - Gold inched higher in European trade on Wednesday, as investors went bargain-hunting after prices of the precious metal fell to a two-week low overnight.
Gold for August delivery on the Comex division of the New York Mercantile Exchange slumped to an intraday low of $1,328.10 a troy ounce, a level not seen since July 1. It last traded at $1,341.65 by 06:49GMT, or 2:49AM ET, up $6.35, or 0.48%.
A day earlier, gold sank $21.30, or 1.57%, its biggest daily loss in three months, as sharp gains in global equity markets dampened demand for the yellow metal.
Gold surged to a more than two-year high of $1,377.50 last week, as uncertainty surrounding global growth in wake of Britain’s vote to exit the European Union sent investors flooding into safe haven assets.
However, uncertainty over the U.K.'s political scene diminished with the imminent appointment of Home Secretary Theresa May as U.K. prime minister. May is set to be installed as prime minister by Wednesday evening, replacing David Cameron who resigned after the Brexit vote last month.
She said she plans to set up a new government department to lead the process of withdrawing the country from the European Union. However, it remains unclear when May will trigger Article 50, which initiates the withdrawal process from the EU.
Prices of the yellow metal are up nearly 27% so far this year amid fading expectations of a Federal Reserve rate hike and as expectations mounted that central banks around the world will step up monetary stimulus to counteract the negative economic shock from the Brexit vote.
Two senior Fed officials said Tuesday that despite last week's better-than-expected U.S. nonfarm payroll data, the central bank should be in no rush to raise interest rates.
Market players awaited comments from a barrage of Fed officials later in the session to judge the balance of opinion among policymakers on the prospect of further rate hikes.
Dallas Fed President Rob Kaplan is due to speak on the world economy at the World Affairs Council of Houston at 13:00GMT, or 9:00AM ET. Philadelphia Fed President Patrick Harker and Cleveland Fed President Loretta Mester are also scheduled to deliver comments later in the day.
Also on the Comex, silver futures for September delivery climbed 29.1 cents, or 1.44%, to trade at $20.46 a troy ounce during morning hours in London, while copper futures advanced 3.9 cents, or 1.76%, to $2.252 a pound.