Investing.com - Gold prices were hovering near three-month lows on Friday, as the U.S. dollar’s recent strength continued to weigh on the precious metal and investors awaited a speech by Federal Reserve Chair Janet Yellen scheduled later in the day.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were steady at $1,221.05.
The June contract ended Thursday’s session 0.28% lower at $1,220.40 an ounce.
Futures were likely to find support at $1,211.00, the session low and a three-month low and resistance at $1,232.60, Thursday’s high.
Investors were eyeing the release of U.S. economic growth data, as well as comments by Fed Chair Janet Yellen due later Friday, for futher hints on the timing of future rate hikes by the U.S. central bank.
Gold is sensitive to moves in U.S. rates, as a rise would lift the opportunity cost of holding non-yielding assets such as bullion.
The U.S. dollar posted sharp gains earlier in the week amid expectations for the Fed to raise interest rates in the near term after last week’s April Fed meeting minutes flagged a possible rate hike if the economy continues to improve.
The greenback was also boosted after a string of positive U.S. data on Thursday boosted optimism over the strengh of the economy.
The U.S. National Association of Realtors said pending home sales rose by 5.1% last month, beating expectations for a gain of 0.6%.
The report came after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending May 21 decreased by 10,000 to 268,000 from the previous week’s total of 278,000.
Separately, the U.S. Commerce Department said durable goods orders rose 3.4% last month, compared to economists' expectations for an increase of 0.5%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 95.14, after hitting two-month highs of 95.67 on Wednesday.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Gold futures are down more than 5% so far in May as recent comments from Fed officials as well as minutes of the Fed's April meeting have convinced many analysts and investors that a rate hike in June or July is a real possibility.
Elsewhere in metals trading, silver futures for July delivery slid 0.39% to $16.280 a troy ounce, while copper futures for July delivery gained 0.31% to $2.109 a pound.