Investing.com - Gold futures held steady in range-bound trade on Wednesday, as investors remained on the sidelines ahead of the release of preliminary data on U.S. second quarter growth and the outcome of the Federal Reserve’s latest policy meeting later in the session.
On the Comex division of the New York Mercantile Exchange, gold for December delivery inched up 0.02%, or 30 cents, to trade at $1,300.80 a troy ounce during European morning hours.
Prices held in a tight range between $1,299.80 and $1,301.90. Gold ended Tuesday’s session down 0.41%, or $5.30, to settle at $1,300.50 an ounce.
Futures were likely to find support at $1,287.50, the low from July 24 and resistance at $1,320.40, the high from July 21.
The Commerce Department is expected to report that the U.S. economy grew at a 3% annual pace in the second quarter, after contracting 2.9% in the previous quarter.
Traders also looked ahead to the Fed’s monetary policy statement due later Wednesday. The central bank is likely to stick to its timetable to taper its monthly bond purchases by another $10 billion to a total of $25 billion a month.
Earlier this month Fed Chair Janet Yellen said that rates could rise sooner if the recovery in the labor market continued.
Gold remained supported as tensions between Russia and the West over the situation in Ukraine remained high, while fighting between Israel and Hamas militants in Gaza also remained in focus.
On Tuesday, the European Union and the U.S. imposed further sanctions against Russia over Moscow's support for separatist rebels in eastern Ukraine.
The precious metal is often seen as a haven investment in times of geopolitical uncertainty.
Also on the Comex, silver for September delivery tacked on 0.24%, or 5.0 cents, to trade at $20.63 a troy ounce.
Elsewhere in metals trading, copper for September delivery dipped 0.29%, or 0.9 cents, to trade at $3.210 a pound.