WASHINGTON (dpa-AFX) - Gold futures slipped for a second straight session to end slightly lower on Wednesday, with investors opting for riskier assets tracking rising global equity markets. Nonetheless, the losses were limited due mainly to the escalating tensions in Gaza where fighting between Israel and Hamas rages on unabated.
While persisting worries about the situation in Gaza and Ukraine support the yellow metal, optimism about strong corporate earnings appears to be limiting its upside.
Meanwhile, reports from Ukraine say pro-Russian rebels have shot down two Ukrainian fighter jets, close to the location of the Malaysian passenger plane crash in eastern Ukraine late last week.
Gold for August delivery, the most actively traded contract, slipped $1.60 or 0.1 percent to close at $1,304.70 an ounce on the Comex division of the New York Mercantile Exchange on Wednesday.
Gold for August delivery scaled an intraday high of $1,311.80 and a low of $1,303.50 an ounce.
On Tuesday, gold futures ended lower, as investors chose riskier assets on the back of strong global equity markets. The escalating tension in Gaza and Ukraine also helped gold futures to limit losses.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, edged up to 804.84 tons on Wednesday, from its previous close of 803.34 tons on Tuesday.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.80 on Wednesday, up from its previous close of 80.78 late Tuesday in North American trade. The dollar scaled a high of 80.83 intraday and a low of 80.72.
The euro traded lower against the dollar at $1.3462 on Wednesday, as compared to its previous close of $1.3465 late Tuesday in North American trade. The euro scaled a high of $1.3474 intraday and a low of $1.3456.
In economic news, euro area consumer confidence deteriorated for a second straight month in July, preliminary data from the European Commission showed Wednesday. The flash consumer confidence index for Eurozone fell to -8.4 from -7.5 in June. Economists had forecast the score remain unchanged.
The confidence index for the EU declined by 1.2 points to -5.5. The final figures will be released along with the economic sentiment data on July 30.
Bank of England Governor Mark Carney said Wednesday the interest rate will have to start rising to maintain price stability as the economy normalizes.
Meanwhile, Bank of England policymakers unanimously decided to maintain the key interest rate and quantitative easing at the meeting held on July 9 and 10, but signaled the possibility of a rate hike late this year as growth became more established.
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