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Gold, silver slip ahead of U.S. inflation data, Gaza, Ukraine in focus

Published 07/22/2014, 05:08 AM
Gold, silver decline ahead of U.S. inflation data
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Investing.com - Gold and silver futures edged lower on Tuesday, as investors 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.

On the Comex division of the New York Mercantile Exchange, gold for August delivery fell to a session low of $1,305.20 a troy ounce, the weakest level since July 18, before trimming losses to last trade at $1,308.30 during U.S. morning hours , down 0.43%, or $5.70.

Futures were likely to find support at $1,298.10, the low from July 17 and resistance at $1,325.50, the high from July 18.

Also on the Comex, silver for September delivery dipped 0.41%, or 8.7 cents, to trade at $20.92 a troy ounce.

The U.S. was to release reports on consumer price inflation and existing home sales later in the session, amid ongoing speculation over when the Federal Reserve may start to raise interest rates.

Meanwhile, traders awaited new developments from Ukraine and the Middle East.

Sentiment recovered after pro-Russian rebel leader Aleksander Borodai handed over the black boxes of the downed Malaysian passenger plane to Malaysian experts earlier Tuesday.

The United Nations Security Council voted unanimously on Monday to approve a resolution calling for an international probe into the incident and unimpeded access to the crash site.

The U.S. initially blamed pro-Russian separatists for the act, while Russia and Ukraine accuse each other of being behind the downed passenger plane.

European Union foreign ministers are to meet later Tuesday to discuss another round of sanctions against Russia, as the country continues to violate Ukraine's sovereignty and back separatists.

Elsewhere, the U.S. stepped up efforts to secure a ceasefire in the Gaza strip, as fighting between Israeli security forces and Hamas militants continued.

U.S. Secretary of State John Kerry and United Nations chief Ban Ki Moon arrived in Cairo late Monday for talks aimed at stopping the bloodshed.

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