Gold futures turn higher as investors look ahead to Fed minutes

Investing.com - Gold prices erased earlier losses to trade modestly higher on Wednesday, as investors looked to the minutes of the Federal Reserve’s April meeting, due for release later in the session, for fresh indications on the timing of an initial rate hike.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery tacked on $2.30, or 0.19%, to trade at $1,209.00 a troy ounce during U.S. morning hours. Futures held in a tight range between $1,202.90 and $1,210.90.

A day earlier, gold tumbled $20.90, or 1.7%, to end at $1,206.70 as a broadly stronger U.S. dollar dampened the appeal of the precious metal. Futures hit a three-month peak of $1,232.00 on Monday.

Prices were likely to find support at $1,190.40, the low from May 13, and resistance at $1,232.00, the high from May 18.

Also on the Comex, silver futures for July delivery rose 7.4 cents, or 0.43%, to trade at $17.14 a troy ounce. On Tuesday, silver plunged 66.1 cents, or 3.73%, to close at $17.07.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up only 0.05% to trade at 95.41, after hitting an overnight peak of 95.94, the strongest level since May 5.

Market players looked ahead to the release of the minutes of the Fed's April meeting later Wednesday, as well as a speech by Fed Chair Janet Yellen on Friday, for further clues on the timing of a U.S. rate hike.

Upbeat housing data on Tuesday boosted hopes for a rebound in second quarter U.S. economic growth, after a sharp slowdown in the first three months of the year.

Elsewhere in metals trading, copper for July delivery slumped 0.4 cents, or 0.12%, to trade at $2.834 a pound, as concerns over the prospects of a Greek default weighed ahead of a critical June 5 deadline for Athens to reach a deal with its creditors.

Athens is scrambling to reach an agreement with its international lenders over economic reforms they say must be implemented before the final €7.2 billion tranche of the country's €240 billion bailout is released.

Greece is due to make a €305 million payment to the International Monetary Fund on June 5, but will default if a deal is not reached by then.