Gold prices edge up as dollar touches nine-month nadir

Gold futures tilted higher away from the lowest since May 16 for the third session in a row, as the dollar index gave up ground, following earlier data from the US, the world's largest economy. 

As of 03:37 GMT, gold futures due on August 16 rose 0.16% to $1,248.90 an ounce from the opening of $1,246.90, while the dollar index shed 0.39% to 96.02 from the opening of 96.39, marking the lowest since October 4. 

Earlier US data showed the goods trade deficit shrinking more than expected, while wholesale inventories rose past expectations in May, as pending home sales fell unexpectedly last month. 

Federal Reserve Bank of Philadelphia President Patrick Harker spoke about the economic outlook and international trade at the European Economics & Financial Centre, in London yesterday, when he described the recent weakness in inflation as transient, while still supporting more policy tightening and raising of interest rates. 

Federal Reserve Chair Janet Yellen also spoke yesterday about global economic issues at the British Academy 'President's Lecture', in London, noting to how the last global financial crisis in 2007 forced Fed policymakers to understand the importance of a safe financial system, adding she doesn't expect the world to face a financial crisis of this scale again. 

Today, global central bank governors are scheduled to participate in a panel discussion at the European Central Bank Forum on Central Banking, in Portugal, including ECB President Mario Draghi, BOE Governor Mark Carney, BOC Governor Stephen Poloz, and BOJ Governor Haruhiko Kuroda.