IV:Gold, silver prices under pressure ahead of key U.S. economic data
Investing.com - Gold and silver prices were under pressure on Wednesday, as market players looked ahead to key U.S. economic data later in the day for further indications on the future course of U.S. monetary policy.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,236.60 a troy ounce during European morning trade, down 0.7%.
Gold prices held in a range between USD1,235.30 a troy ounce and USD1,244.90 a troy ounce. Futures were likely to find support at USD1,226.60 a troy ounce, the low from January 10 and resistance at USD1,254.90, the high from January 14.
Meanwhile, silver for March delivery dropped 1.1% to trade at USD20.05 a troy ounce. Comex silver prices held in a range between USD20.03 a troy ounce and USD20.26 a troy ounce. Silver futures were likely to find support at USD19.54 a troy ounce, the low from January 10 and resistance at USD20.60, the high from January 14.
The U.S. is to release data on producer price inflation and a report on manufacturing activity in the New York region later Wednesday.
Market players have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Federal Reserve to scale back stimulus.
Data released Tuesday showed that U.S. retail sales rose 0.2% in December, while core retail sales, which excludes auto sales, rose 0.7%.
The upbeat data helped bolster expectations that the economic recovery in the U.S. will continue to deepen this year and offset concerns over last week’s surprising poor nonfarm payrolls report for December.
Fed board members Charles Plosser and Richard Fisher yesterday called for an end to bond buying. The Fed announced its first cut to the USD85 billion in monthly bond purchases in December, citing an improving economy.
The central bank is scheduled to meet January 28-29 to review the economy and assess policy.
Elsewhere on the Comex, copper futures for March delivery fell 0.6% to trade at USD3.317 a pound.
Copper prices moved lower after data showed that Chinese bank lending and money supply growth for December came in below expectations, underlining concerns over liquidity levels.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
