Investing.com - Gold prices came off the lowest levels of the session on Wednesday, after data showed that the U.S. economy grew less than expected in the first quarter, adding to concerns over the strength of the world’s largest economy.
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.
On Tuesday, 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.
The Commerce Department said gross domestic product grew at an annual rate of 0.2% in the three months ended March 31, below expectations for growth of 1%. The U.S. economy expanded by 2.2% in the preceding quarter.
The data showed 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.
The downbeat data underlined concerns over the recovery and added to expectations that the Fed could delay hiking interest rates until late 2015, instead of tightening midyear.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.65% to trade at 95.56 early on Wednesday, the weakest level since March 18.
Also on the Comex, 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%.
Elsewhere in metals trading, 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 remained supported amid speculation policymakers in China will have to introduce further stimulus measures to jumpstart the economy amid lackluster growth.
Since November, the People's Bank of China has introduced a series of stimulus measures, including lowering interest rates twice and cutting the reserve requirement ratios of major banks twice, in order to spur economic activity and boost growth.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption.