Gold drops as Ukraine concerns ebb, Fed in focus By South CCAA Investments/Commodities News Gold prices fell to a four-day low on Tuesday, as concerns over the situation in Ukraine receded and as investors shifted their focus to the Federal Reserve’s upcoming policy meeting. Gold drops as Ukraine concerns ebb, Fed in focusGold slumps as Ukraine fears recede, Federal Reserve meeting in focus 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 $1,359.00 an ounce during European morning hours, down 1.01%, or $13.90. 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 1.2%, or 25.5 cents, to trade at $21.02 a troy ounce. Silver ended Monday’s session down 0.64%, or 13.8 cents, to settle at $21.27 an ounce. Demand for safe haven assets weakened as an absence of violence and mild sanctions from the West in response to Sundays referendum in Crimea fueled appetite for risk-sensitive assets. Russian President Vladimir Putin was to give a speech later Tuesday, after Crimea voted overwhelmingly in favor of becoming part of Russia in a referendum deemed illegal by the European Union and the U.S. Uncertainty over the situation in Ukraine has weighed on global sentiment over the past few weeks and boosted demand for the precious metal. Meanwhile, investors began to turn their attention to the outcome of the Fed’s policy meeting on Wednesday amid expectations for a reduction in its bond buying program to $55 billion from the current $65 billion. 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. Elsewhere on the Comex, copper futures for May delivery inched up 0.4%, or 1.1 cents, to trade at $2.964 a pound, as investors continued to close out bets on lower prices. 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
Posted on: Tue, 18 Mar 2014 09:39:07 +0000
Trending Topics
Recently Viewed Topics
© 2015