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Gold rises after IMF says US dollar is overvalued

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Gold rose slightly on Wednesday as the dollar dipped following remarks from the International Monetary Fund on the U.S. currency.

Spot gold traded 0.3% higher at $1,410.06 per ounce. U.S. gold futures climbed just 0.04% to $1,411.80.

The dollar index, which tracks the greenback's performance against six other currencies, fell 0.1% after the IMF said the U.S. currency is overvalued by 6% to 12%, based on near-term economic fundamentals.

The IMF's comment is likely to give President Donald Trump more fodder for his frequent complaints that dollar strength is hampering U.S. exports.

Earlier in the day, gold had traded slightly lower as stronger economic data from the previous session dampened hope for a rate cut later this month.

Chicago Fed President Charles Evans, meanwhile, said on Tuesday that an interest rate cut of a half a percentage point at the U.S. central bank's July 30-31 policy meeting could mean that the Fed's inflation goal is reached sooner.

Investors now await the Fed's 'Beige Book' later in the day for insight on how trade tensions are affecting the business outlook.

Gold is highly sensitive to rising interest rates, which lift the opportunity cost of holding non-yielding bullion. They also boost the dollar, in which the metal is priced.

In the latest on the trade row, Trump said on Tuesday the United States still has a long way to go to conclude a deal with China but could impose tariffs on an additional $325 billion worth of Chinese goods if needed.

"Gold remains locked within the $1,400 - $1,420 range, while more broadly we look for a move outside of $1,380 - $1,440 for medium-term direction," trading firm MKS PAMP said in a note.

Meanwhile, silver held steady at $15.56 an ounce, extending gains for a fourth straight session. It hovered close to a more than four-month high of $15.69.