FRX: Gold inches lower as markets await Bernanke testimony
Forexpros - Gold futures edged modestly lower in rangebound trade during U.S. morning trade on Tuesday, as investors were hesitant to make major moves ahead of a testimony by Federal Reserve Chairman Ben Bernanke later in the day.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,588.05 a troy ounce during U.S. morning trade, shedding 0.2%.
The August contract traded in between a range of USD1,598.75 a troy ounce, the daily high and a session low of USD1,585.45 a troy ounce.
Gold futures were likely to find support at USD1,567.15 a troy ounce, the low from July 13 and near-term resistance at USD1,601.25, the high from July 10.
Gold traders looked ahead to Fed Chairman Ben Bernanke's semi-annual testimony to the U.S. Congress later in the day, amid speculation over the possibility of more easing from the U.S. central bank.
The Fed Chairman is due to testify before the Senate Banking Committee later on Tuesday, and then before the House Financial Services panel Wednesday.
Expectations for another round of quantitative easing from the Fed were boosted on Monday, following data showing a third consecutive monthly decline in U.S. retail sales in June.
Markets showed a limited reaction to data saying that core consumer price inflation in the U.S. rose 0.2% in June, broadly in line with market expectations, while prices including food and energy costs were flat.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would pump more money into the financial system.
Gold gained as much as 15% earlier this year to hit USD1,790 an ounce after the Fed said in January it would keep interest rates near zero until at least late 2014 and indicated that it could introduce a fresh round of asset-purchases.
However, prices have lost almost 12% since late February, as the Fed failed to deliver more easing and amid concerns over the euro zone’s deepening debt crisis, which has fueled demand for the precious metal's hedge, the greenback.
Elsewhere on the Comex, silver for September delivery shed 0.3% to trade at USD27.24 a troy ounce, while copper for September delivery rose 0.1% to trade at USD3.489 a pound.
