Gold jumps to session highs after U.S. consumer confidence data

Investing.com - Gold prices rose to the highest levels of the session on Tuesday, after data showed that U.S. consumer confidence deteriorated unexpectedly in April, fuelling concerns over the strength of the economy.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery rallied $7.20, or 0.6%, to trade at $1,210.40 a troy ounce during U.S. morning hours. Futures held in a range between $1,198.70 and $1,211.90.

On Monday, gold surged $28.20, or 2.4%, to end at $1,203.20 as a bout of technical buying and short covering lifted prices. Futures were likely to find support at $1,174.10, the low from April 24, and resistance at $1,215.90, the high from April 7.

Also on the Comex, silver futures for July delivery rose 16.6 cents, or 1.01%, to trade at $16.60 a troy ounce. A day earlier, silver soared 75.9 cents, or 4.84%, to settle at $16.43.

The Conference Board said its index of consumer confidence fell to 95.2 this month from a reading of 101.4 in March. Analysts expected the index to increase to 102.5 in April.

Market participants were looking ahead to the conclusion of the Federal Reserve's two-day monetary policy meeting on Wednesday, which could provide indications over the timing of a future rate hike.

A recent run of disappointing U.S. economic data dampened optimism over the recovery, fuelling speculation the Fed could delay hiking interest rates until late 2015, instead of tightening midyear.

The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.7% to trade at 96.23, the lowest level since March 18.

Elsewhere in metals trading, copper for July delivery inched up 0.2 cents, or 0.05%, to trade at $2.779 a pound.

Copper rose 2.4 cents, or 0.87%, on Monday to settle at $2.777 amid speculation policymakers in China will have to introduce further stimulus measures to jumpstart the economy amid lackluster growth.

China is the world’s largest copper consumer, accounting for almost 40% of world consumption.