Gold futures on the COMEX division of the New York Mercantile Exchange rose to a two-year high on Wednesday as the U.S. dollar weakened.
The most active gold contract for August delivery rose 8.40 U.S. dollars, or 0.62 percent, to settle at 1,367.10 dollars per ounce, the highest settlement since March 2014.
Gold futures extended some gains from its settlement in electronic trading after the Federal Reserve released its minutes of June policy meeting.
Gold was given support as the U.S. Dollar Index fell against most of other major currencies on Wednesday, according to analysts. Lingering fear remains after the United Kingdom voted to leave the European Union. The referendum has been dubbed the "Brexit" by investors and is largely seen as a highly destabilizing move.
Analysts noted that the Brexit has caused volatility in the market, driving investors to gold as a safe haven. However, the precious metal was prevented from rising further as the U.S.-based Institute for Supply Management reported on Wednesday its key non-manufacturing measure rose to a better-than- expected 56.5.
Analysts noted that this also shows employment three points higher, indicating a likely positive sign for the big jobs report due on Friday. Moreover, the Commerce Department said U.S. goods and services deficit was 41.1 billion U.S. dollars in May, up 3.8 billion dollars from a revised reading in April. The seasonally adjusted Markit Flash U.S. services PMI Business Activity Index registered 51.4 in June, slightly higher than market consensus of 51.3.
Investors are keeping a close eye on Friday's nonfarm jobs report this week for more clues on the U.S. Federal Reserve's next rate hike.
Silver for September delivery rose 29.60 cents, or 1.49 percent, to close at 20.203 dollars per ounce. Platinum for October delivery added 14.40 dollars, or 1.34 percent, to close at 1,091. 30 dollars per ounce.
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