Gold prices inched up on Wednesday as the dollar slipped after remarks by US President Donald Trump raised fears of a government shutdown, while investors awaited further direction from a key annual central banking conference this week.

Spot gold was up 0.1 per cent to $1,285.30 an ounce by 0555 GMT, after shedding 0.5 per cent in the previous session.  The dollar edged down against the yen following President Trump’s remarks.

“If we have to close down the government, we are building that wall,” Trump told supporters at a rally in Arizona.

Elsewhere, markets were bracing for an annual gathering of central bankers at a meeting in Jackson Hole, Wyoming on Thursday and Friday, where Federal Reserve Chair Janet Yellen and European Central Bank chief Mario Draghi are set to deliver speeches on the outlook for monetary policy.