Investing.com - Gold futures held below the key $1,300-level on Wednesday, amid speculation that the Federal Reserve could hike U.S. interest rates sooner than expected.
On the Comex division of the New York Mercantile Exchange, gold for August delivery eased up 0.02%, or 30 cents, to trade at $1,297.40 a troy ounce during European morning hours. Prices held in a tight range between $1,294.10 and $1,299.90.
Gold tumbled to $1,292.60 an ounce on Tuesday, the lowest June 19, before settling at $1,297.10, down 0.73%, or $9.60.
Gold futures were likely to find support at $1,276.20, the low from June 19 and resistance at $1,314.40, the high from July 15.
Also on the Comex, silver for September delivery inched down 0.58%, or 12.2 cents, to trade at $20.76 a troy ounce. Prices fell to $20.67 on Tuesday, the weakest level since June 20.
Federal Reserve Chair Janet Yellen said Tuesday that the central bank could start raising interest rates sooner than expected if the U.S. labor market continues to improve more quickly than anticipated.
However, the Fed chair also said that if the economic recovery disappoints monetary policy would remain accommodative and reiterated that rates are likely to remain on hold for a considerable period after the bank’s quantitative easing program ends.
The remarks came during testimony to the Senate Banking Committee in Washington. Yellen continues her testimony in front of U.S. lawmakers on Wednesday.
Elsewhere in metals trading, copper for September delivery dipped 0.13%, or 0.4 cents, to trade at $3.245 a pound.
Official data released earlier showed that China’s economy expanded at an annual rate of 7.5% in the second quarter, above expectations for growth of 7.4%.
A separate report showed that industrial production in China rose by an annualized rate of 9.2% in June, compared to expectations for a 9% increase, after an 8.8% gain in the previous month.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption.