Credit: Investing.com -
Investing.com - Gold prices rebounded from the previous session's six-week low on Wednesday, as a round of technical buying ensued after prices held above a key support level.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery held in a tight range between $1,309.90 a troy ounce and $1,316.70 an ounce.
Gold last traded at $1,315.30 an ounce during European morning hours, up 0.3%, or $3.90.
Futures fell to $1,305.90 an ounce on Tuesday, the lowest since February 14, before trimming losses to settle at $1,311.40, up 0.02%, or 30 cents.
Prices were likely to find support at $1,300.00 a troy ounce, the low from February 14 and resistance at $1,335.70, the high from March 24.
Gold moved higher after prices held above their 200-day moving average of $1,296.83, triggering a flurry of automatic buy orders.
200-day moving averages are considered key trading levels for many investors, often serving as a floor for prices after big declines.
Gold has been under heavy selling pressure in recent sessions amid growing expectations that the Federal Reserve will raise interest rates sooner than expected.
Market watchers brought forward expectations for a rate increase by U.S. central bank after Fed Chair Janet Yellen suggested last week that a rate hike might come about six months after the bank's stimulus program ends, which is expected to happen in the fall.
Investors now looked ahead to U.S. data on durable goods orders later in the session for further indications on the strength of the economy and the future course of monetary policy.
Data on Tuesday showed that U.S. consumer confidence improved more than expected in March. However, a separate report said that new home sales fell by the most in five months in February, indicating continued weakness in the housing sector.
Elsewhere on the Comex, silver for May delivery eased up 0.54%, or 10.8 cents, to trade at $20.08 a troy ounce. Silver ended Tuesday's session down 0.44, or 8.8 cents, to settle at $19.97 an ounce.
Meanwhile, copper futures for May delivery advanced 0.22%, or 0.6 cents, to trade at $3.012 a pound, amid growing hopes that China will unveil fresh stimulus measures to boost slowing economic growth.
Data released on Monday showed that Chinese manufacturing activity deteriorated for a third successive month in March.
The Asian nation is the world's largest copper consumer, accounting for almost 40% of world consumption last year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
