Investing.com - Gold futures erased gains to turn mildly lower on Wednesday, after official data showed that the U.S. economy grew more-than-expected in the second quarter of 2012, easing concerns over the country’s economic outlook.
Market players now looked ahead to the outcome of the Federal Reserve's highly anticipated policy statement due later in the trading session.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,323.55 a troy ounce during U.S. morning hours, down 0.1%.
Comex gold rose by as much as 1.1% earlier in the session to hit a daily high of USD1,339.15 a troy ounce.
The December contract settled down 0.35% at USD1,324.80 a troy ounce on Tuesday.
Gold futures were likely to find support at USD1,308.75 a troy ounce, the low from July 25 and resistance at USD1,347.85, the high from July 23.
The Bureau of Economic Analysis said earlier that gross domestic product grew at a seasonally adjusted annual rate of 1.7% in the three months to June, beating expectations for growth of 1%.
The data showed personal consumption grew 1.8% in the second quarter, above expectations for 1.6%. Consumer spending typically accounts for nearly 70% of U.S. economic growth.
The robust GDP report came after payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 200,000 in July, above expectations for an increase of 180,000.
While not viewed as a reliable guide for the government jobs report due Friday, it does give guidance on private-sector hiring.
Market participants now looked ahead to the Fed's upcoming policy statement due later in the day on hopes the central bank could offer more clues on when it could slow the pace of its monthly bond purchases.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its quantitative easing program sooner-than-expected.
The precious metal is on track to post a loss of 21% on the year amid concerns the Fed will start to unwind its stimulus program by the year's end.
An exit from the stimulus would deal a heavy blow to gold, which has thrived on demand from investors who buy gold to hedge against the inflationary risks of loose monetary policies.
Elsewhere on the Comex, silver for September delivery was little changed to trade at USD19.69 a troy ounce, while copper for September delivery rallied 1.1% to trade at USD3.075 a pound.
The red metal edged higher on hopes policy makers in China will introduce fresh easing measures to boost growth in the world’s second largest economy.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Market players now looked ahead to the outcome of the Federal Reserve's highly anticipated policy statement due later in the trading session.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,323.55 a troy ounce during U.S. morning hours, down 0.1%.
Comex gold rose by as much as 1.1% earlier in the session to hit a daily high of USD1,339.15 a troy ounce.
The December contract settled down 0.35% at USD1,324.80 a troy ounce on Tuesday.
Gold futures were likely to find support at USD1,308.75 a troy ounce, the low from July 25 and resistance at USD1,347.85, the high from July 23.
The Bureau of Economic Analysis said earlier that gross domestic product grew at a seasonally adjusted annual rate of 1.7% in the three months to June, beating expectations for growth of 1%.
The data showed personal consumption grew 1.8% in the second quarter, above expectations for 1.6%. Consumer spending typically accounts for nearly 70% of U.S. economic growth.
The robust GDP report came after payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 200,000 in July, above expectations for an increase of 180,000.
While not viewed as a reliable guide for the government jobs report due Friday, it does give guidance on private-sector hiring.
Market participants now looked ahead to the Fed's upcoming policy statement due later in the day on hopes the central bank could offer more clues on when it could slow the pace of its monthly bond purchases.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its quantitative easing program sooner-than-expected.
The precious metal is on track to post a loss of 21% on the year amid concerns the Fed will start to unwind its stimulus program by the year's end.
An exit from the stimulus would deal a heavy blow to gold, which has thrived on demand from investors who buy gold to hedge against the inflationary risks of loose monetary policies.
Elsewhere on the Comex, silver for September delivery was little changed to trade at USD19.69 a troy ounce, while copper for September delivery rallied 1.1% to trade at USD3.075 a pound.
The red metal edged higher on hopes policy makers in China will introduce fresh easing measures to boost growth in the world’s second largest economy.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.