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Gold steady near 2-week high

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Investing.com -

Investing.com - Gold prices held near the previous session's two-week high in subdued trade on Wednesday, as investors remained on the sidelines amid a lack of fresh trading cues.

On the Comex division of the New York Mercantile Exchange, gold for August delivery traded in a narrow range between $1,258.00 and $1,262.80 a troy ounce. Prices last traded at $1,261.40 during European morning hours, up 0.1%, or $1.30.

Gold rose to $1,263.80 on Tuesday, the most since May 28, before coming off the highs to settle at $1,260.10, up 0.49%, or $6.20.

Prices were likely to find support at $1,241.20 an ounce, the low from June 5 and resistance at $1,267.50, the high from May 28.

Gold traders are looking ahead to Thursday's U.S. retail sales report for further indications on the strength of the economic recovery.

The precious metal has been under heavy selling pressure recently as investors bet on strong economic growth in the U.S. during the second quarter, as the economy shakes off the effects of a weather-related slowdown over the winter.

Also on the Comex, silver for July delivery inched up 0.29%, or 5.5 cents, to trade at $19.22 a troy ounce.

Elsewhere in metals trading, copper for July delivery tacked on 0.21%, or 0.6 cents, to trade at $3.059 a pound.

Copper fell to a five-week low on Tuesday as Chinese authorities continued to investigate whether companies used the same copper, aluminum and iron ore stocks as collateral for multiple loans.

Concerns about fraud in commodities markets spread to a second Chinese port of Penglai on Monday after authorities already began conducting a probe into allegations of fraud in the port of Qingdao last week.

Copper is used as collateral by companies and investors in China, in an effort to work around strict lending standards enforced by Beijing.

China 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.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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