(MENAFN- FxPro) Gold prices fell for the second consecutive session on Wednesday, as a broadly stronger U.S. dollar dampened the appeal of the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery shed $1.60, or 0.13%, to trade at $1,205.10 a troy ounce during European morning hours. Futures held in a tight range between $1,203.30 and $1,209.10.
A day earlier, gold tumbled $20.90, or 1.7%, to end at $1,206.70. Futures hit a three-month peak of $1,232.00 on Monday.
Prices were likely to find support at $1,190.40, the low from May 13, and resistance at $1,232.00, the high from May 18.
Also on the Comex, silver futures for July delivery dipped 5.1 cents, or 0.3%, to trade at $17.02 a troy ounce. On Tuesday, silver plunged 66.1 cents, or 3.73%, to close at $17.07.
The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.5% to hit 95.85 early on Wednesday, the strongest level since May 5.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
The greenback was boosted after data on Tuesday showed that U.S. housing starts in April rose to the highest level in nearly seven-and-a-half years, while building permits also jumped.
The upbeat data boosted hopes for a rebound in second quarter economic growth after a sharp slowdown in the first three months of the year.
Investors were looking to the minutes of the Federal Reserve's April meeting, due for release later Wednesday, for fresh indications on the timing of an initial rate hike.
Rising interest rates historically have been a negative for gold, which cannot compete with the higher interest rates offered by other assets.
Elsewhere in metals trading, copper for July delivery slumped 0.4 cents, or 0.12%, to trade at $2.834 a pound, as concerns over the prospects of a Greek default weighed ahead of a critical June 5 deadline for Athens to reach a deal with its creditors.
Athens is scrambling to reach an agreement with its international lenders over economic reforms they say must be implemented before the final ‚¬7.2 billion tranche of the country's ‚¬240 billion bailout is released.
Greece is due to make a ‚¬305 million payment to the International Monetary Fund on June 5, but will default if a deal is not reached by then.
In the forex market, the euro was down 0.59% to 1.1084, the lowest level since May 5 from 1.1148 late Tuesday.
The single currency ended Tuesday's session down 1.6% against the greenback after senior European Central Bank policymaker Benoit Coeure said the bank is planning to speed up the pace of its bond-buying stimulus program before the summer, in order to avoid lower market liquidity in late July and August.
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