IV:Gold, silver lower ahead of Putin speech, U.S. CPI data
Investing.com - Gold and silver prices retreated on Tuesday, as investors remained cautious ahead of a highly anticipated speech by Russian President Vladimir Putin, as well as U.S. inflation data due later in the day.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery fell to a session low of $1,358.10 a troy ounce, the weakest since March 12.
Gold last traded at $1,362.90 an ounce during U.S. morning hours, down 0.74%, or $10.00. Prices lost 0.44%, or $6.10 an ounce, on Monday to settle at $1,372.90.
Futures were likely to find support at $1,345.60 a troy ounce, the low from March 12 and resistance at $1,392.60, the high from March 17.
Meanwhile, silver for May delivery slumped 1%, or 21.5 cents, to trade at $21.06 a troy ounce. Silver ended Monday’s session down 0.64%, or 13.8 cents, to settle at $21.27 an ounce.
Silver futures were likely to find support at $20.82 a troy ounce, the low from March 12 and resistance at $21.65, the high from March 17.
Demand for safe haven assets weakened as an absence of violence and mild sanctions from the West in response to Sunday's referendum in Crimea fueled appetite for risk-sensitive assets.
Vladimir Putin was set to address Russia's parliament later on Tuesday on making Crimea part of the Russian Federation, one day after signing a decree recognizing the region as a sovereign state.
Uncertainty over the situation in Ukraine has weighed on global sentiment over the past few weeks and boosted demand for the precious metal.
Meanwhile, market players looked ahead to key U.S. economic data later in the day for further indications on the strength of the economy and the future course of monetary policy.
The U.S. is to produce data on consumer price inflation as well as reports on building permits and housing starts.
Investors began to turn their attention to the outcome of the Federal Reserve’s policy meeting on Wednesday amid expectations for a reduction in its bond buying program to $55 billion from the current $65 billion.
Elsewhere on the Comex, copper futures for May delivery inched down 0.1%, or $0.003 cents, to trade at $2.949 a pound.
The industrial metal fell to $2.908 a pound on March 12, the lowest since July 2010, as ongoing concerns over the health of China’s economy dampened demand for growth-linked assets.
