Investing.com - Gold traded near the previous session's seven-week low on Tuesday, as investors looked ahead to testimony from Federal Reserve Chairwoman Janet Yellen later in the day for further indications on when the central bank will start raising interest rates.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery dipped $1.40, or 0.12%, to trade at $1,199.40 a troy ounce during European morning hours.
A day earlier, gold fell to $1,190.60, the lowest since January 5, before settling at $1,200.80, down $4.10, or 0.34%.
Futures were likely to find support at $1,177.80, the low from January 5, and resistance at $1,215.30, the high from February 20.
Fed Chair Janet Yellen was to testify before the Senate Banking Committee in Washington later in the trading day, with market participants watching for any indication on when U.S. interest rates may start to rise.
Last week’s minutes of the Fed’s January meeting were more dovish than expected, showing that some officials thought that raising rates too soon could weigh on the U.S. economic recovery.
Gold has been under pressure in recent weeks amid ongoing expectations for the Federal Reserve to start raising interest rates later this year.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, ticked up 0.13% to 94.79.
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.
Meanwhile, the Eurogroup is expected to mull Greece's revised list of reform proposals after the debt-strapped country submitted a list of proposed economic reforms to Brussels around midnight on Monday.
The reforms must be approved by the country’s lenders in order for Greece to secure the four-month extension to its €240 billion bailout.
Investors remained wary as a collapse of the deal would revive concerns over a possible Greek exit from the euro zone.
Elsewhere on the Comex, silver futures for May delivery eased up 1.1 cents, or 0.07%, to trade at $16.31 a troy ounce. Prices hit $16.11 on Monday, the lowest level since January 5.
Meanwhile, copper for May delivery dipped 1.0 cent, or 0.39%, to trade at $2.577 a pound.
China markets remained shut for the Chinese New Year holiday and will reopen tomorrow.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year, removing a key support for prices.