Investing.com - Gold and silver futures remained under pressure on Wednesday, as investors looked ahead to the second day of Federal Reserve Chair Janet Yellen''s semi-annual testimony before the House Financial Services Committee.
On the Comex division of the New York Mercantile Exchange, gold for August delivery eased up 0.1%, or $1.30, to trade at $1,298.40 a troy ounce during U.S. 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 shed 0.44%, or 9.1 cents, to trade at $20.79 a troy ounce. Prices fell to $20.67 on Tuesday, the weakest level since June 20.
Market players remained cautious before Fed Chair Yellen testifies before the House Financial Services Committee at 10:00 a.m. Eastern.
On Tuesday, Yellen said 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.
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.