Investing.com - Gold prices were little changed on Wednesday, as investors looked ahead to testimony on monetary policy by Federal Reserve Chair Janet Yellen later in the trading day for further indications on when U.S. interest rates may start to rise.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange tacked on 20 cents, or 0.02%, to trade at $1,153.70 a troy ounce during European morning hours.
A day earlier, gold fell to $1,144.40, a level not seen since March 17, before closing at $1,153.50, down $1.90, or 0.16%. Futures were likely to find support at $1,142.40, the low from March 17, and resistance at $1,163.90, the high from July 13.
Also on the Comex, silver futures for September delivery slumped 3.5 cents, or 0.23%, to trade at $15.28 a troy ounce. On Tuesday, silver declined 14.2 cents, or 0.92%, to end at $15.31.
Investors await the start of Federal Reserve chair Janet Yellen's two-day testimony before Congress on Wednesday for further indications on the timing of a highly-anticipated interest rate hike. On Friday, Yellen said the Fed anticipates raising interest rates later this year if the U.S. economy and labor markets continue to show improvement in the coming weeks.
The U.S. is to publish figures on industrial production and manufacturing activity in the New York region later Wednesday, as traders look for further indications on the strength of the economy and the timing of an interest rate hike.
Data on Tuesday showed a surprise fall in U.S. retail sales in June. Retail sales declined 0.3% last month, disappointing expectations for a gain of 0.2%, while core retail sales fell 0.1%, compared to forecasts for a 0.5% increase.
The disappointing data fueled concerns over the outlook for the economic recovery and tempered expectations for higher interest rates.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last at 96.83, up 0.03% for the day.
The euro was little changed as investors waited to see if the Greek parliament would support harsh austerity measures demanded by the country’s creditors in order to secure a third bailout deal.
Four pieces of legislation must be passed by the end of the day on Wednesday, including pension and sales tax reforms.
Elsewhere in metals trading, copper for September delivery rose 2.1 cents, or 0.83%, to trade at $2.556 a pound during morning hours in London.
Official data released earlier showed that China’s economy grew 7.0% in the second quarter, steady with the previous quarter and slightly better than analysts' forecasts for growth of 6.9%.
A separate report showed that industrial production rose by an annualized rate of 6.8% in June, above expectations for a 6.0% increase and following a gain of 6.1% in the preceding month.
Data on retail sales and fixed asset investment also beat forecasts, fueling speculation China's economy is regaining strength after a recent bout of weakness.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption.