Investing.com - Gold prices traded at the lowest level since February on Wednesday, as investors were hesitant to buy into the market amid a weak technical outlook.
On the Comex division of the New York Mercantile Exchange, gold for August delivery fell to a session low of $1,261.30 a troy ounce, the weakest level since February 7, before trimming losses to last trade at $1,264.70 during European morning hours, down 0.08%, or $1.00.
Gold prices were likely to find support at $1,257.90 an ounce, the low from February 7 and resistance at $1,294.70, the high from May 27.
Gold tumbled 2.03%, or $26.20 on Tuesday as a bout of technical selling kicked in after prices broke below a key support level close to the $1,277-level, triggering fresh sell orders amid bearish chart signals.
Comex gold prices have been under heavy selling pressure in recent weeks as upbeat U.S. economic data underlined expectations that the Federal Reserve will begin to raise rates sooner than previously thought.
Data released Tuesday showed that U.S. durable goods orders rose unexpectedly in April, while another report showed that U.S. consumer confidence improved in line with forecasts this month.
The Commerce Department said orders for long lasting manufactured goods rose 0.8%, compared to expectations of a 0.7% decline.
Separately, the Conference Board reported that its consumer conference index rose to 83 in May, up from a revised 81.7 in April, in line with economists’ expectations.
The robust data added to the view that the U.S. economy is shaking off the effects of a weather-related slowdown over the winter, bolstering the outlook for the broader economic recovery.
Also on the Comex, silver for July delivery eased up 0.16%, or 3.1 cents, to trade at $19.09 a troy ounce. Prices lost 1.81%, or 35.1 cents, on Tuesday to end at $19.06.
Elsewhere in metals trading, copper for July delivery tacked on 0.29%, or 0.9 cents, to trade at $3.187 a pound.
Copper prices have been well-supported in recent sessions amid growing optimism over the health of the U.S. economy and speculation demand from top consumer China will increase in the near-term.