On Wednesday gold prices trimmed the session's losses as data indicated that the U.S. economy grew less than expected in the
first quarter, adding to jitters over the US economic recovery.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery dipped $2.80, or 0.23%, to trade at $1,211.10 a troy ounce during U.S. morning hours. Futures fell to an intraday low of $1,203.90.
A day earlier, gold rallied to $1,214.60, the strongest level since April 7, before ending at $1,213.90, up $10.70, or 0.89%. Futures were likely to find support at $1,174.10, the low from April 24, and resistance at $1,224.50, the high from April 6.
Earlier, the US Commerce Department reported that gross domestic product grew at an annual rate of 0.2% in the three months of 2015, below expectations for growth of 1%. In the previous quarter, the U.S. economy expanded by 2.2%.
Personal consumption rose 1.9% in the first quarter,
slightly above expectations for a 1.7% gain, and compared to a 4.4%
increase in the preceding quarter.
The GDP price index fell by
0.1% in the first quarter, compared to expectations for a 0.5% increase
and up from 0.1% in the preceding quarter.
Silver futures for July delivery ticked up 1.8 cents, or 0.11%, to trade at $16.64 a troy ounce. A day earlier, silver rose to $16.70, a level not seen since April 8, before settling at $16.63, up 19.1 cents, or 1.16%.
Copper for July delivery inched down 0.7 cents, or 0.24%, to trade at $2.779 a pound. Copper hit $2.794 on Tuesday, the highest level since April 20, before ending at $2.786, up 0.9 cents, or 0.34%.
Copper was backed amid hopes that policymakers in China will introduce further stimulus measures to boost the economy amid slow growth.
The People's Bank of China has introduced a series of stimulus measures since November. Those include lowering interest rates two times and cutting the reserve requirement ratios of major banks, also twice, in order to spur economic activity and boost growth.
