Investing.com - Gold prices inched higher on Wednesday, as investors awaited testimony from Federal Reserve Chair Janet Yellen later in the day, while worries about escalating violence in Ukraine continued to boost demand for the haven asset.
On the Comex division of the New York Mercantile Exchange, gold for June delivery held in a range between $1,307.10 a troy ounce and $1,313.70 an ounce.
Gold last traded at $1,311.00 an ounce during European morning hours, up 0.18%, or $2.40. Futures dipped 0.05%, or 70 cents on Tuesday to settle at $1,308.60.
Gold prices were likely to find support at $1,272.00 an ounce, the low from May 2 and resistance at $1,326.90, the high from April 15.
Fed chief Janet Yellen was expected to reiterate that the central bank intends to keep rates on hold for longer, in spite of last month’s stronger-than-forecast U.S. nonfarm payrolls report in her congressional testimony later in the session.
Meanwhile, investors continued to monitor events in Ukraine, as conflict between the government and pro-Russian separatists continued to escalate, stoking fears that the crisis will develop and drag the U.S. deeper into the standoff.
The West is accusing Russia of leading a separatist revolt in eastern Ukraine after it annexed Crimea last month.
Gold, seen as a safe haven investment, usually benefits from geopolitical turmoil.
Also on the Comex, silver for July delivery inched down 0.06%, or 1.2 cents, to trade at $19.63 a troy ounce. Silver ended Tuesday’s session up 0.38%, or 7.4 cents, to settle at $19.64 an ounce.
Elsewhere in metals trading, copper for July delivery shed 0.57%, or 1.8 cents, to trade at $3.040 a pound.
Data released earlier showed that China’s HSBC Services Purchasing Managers Index ticked down to 51.4 in April from 51.9 in March, underlining concerns that an economic slowdown in the world’s second-largest economy is deepening.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
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