2018.07.1814:17:00UTC+00Gold Ends Flat Around 1-year Low

Gold prices stayed around 1-year lows on Wednesday as the dollar continued to exhibit strength against most major currencies, with Federal Reserve Chair Jerome Powell's testimony before the Congress hinting at gradual interest rate hikes.

The dollar index rose to 95.18 but pared some gains as the session progressed. It was up 0.06 or 0.06% at 94.79 by early afternoon.

Gold prices dropped to a low of $1,220.90 an ounce, before regaining some lost ground. Still, gold futures for August settled at $1,227.90 an ounce, up $0.60 or 0.05% from previous close.

On Tuesday, gold futures ended down $12.40 or 1% at $1,227.30 an ounce, the lowest close since 14 July 2017.

Silver futures for September were lower by $0.037 or 0.24% at $15.580 an ounce and Copper was up $0.017 or 0.62% at $2.764 per pound.

In economic news, data released by the Commerce Department showed a steeper than expected pullback in US housing starts in the month of June. The data showed that housing starts plunged by 12.3% to an annual rate of 1.173 million in June, a nine-month low, after jumping by 4.8% to a revised rate of 1.337 million in May. Housing starts were expected to drop by 2.2%.

Meanwhile, building permits fell by 2.2% to an annual rate of 1.273 million in June after tumbling by 4.6% to a rate of 1.301 million in May. Economists had expected building permits to increase by 2.2% in the month.