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Gold, silver slump ahead of U.S. retail sales data

Published 05/13/2014, 05:34 AM
Gold, silver edge lower ahead of U.S. retail sales report

Investing.com - Gold and silver prices declined on Tuesday, as investors looked ahead to key U.S. data later in the day for further indications on the strength of the labor market and the future course of monetary policy.

On the Comex division of the New York Mercantile Exchange, gold for June delivery dipped 0.16%, or $2.10, to trade at $1,293.80 a troy ounce, during U.S. morning hours. Prices held in a range between $1,290.30 and $1,298.80.

Gold hit $1,304.50 an ounce on Monday, the most since May 7, before settling at $1,295.80, up 0.64%, or $8.20.

Gold prices were likely to find support at $1,277.70 an ounce, the low from May 12 and resistance at $1,315.00, the high from May 7.

Also on the Comex, silver for July delivery eased down 0.07%, or 1.3 cents, to trade at $19.53 a troy ounce. Futures ended Monday’s session up 2.21%, or 42.2 cents, to settle at $19.54 an ounce.

Silver futures were likely to find support at $19.04 an ounce, the low from May 12 and resistance at $19.67, the high from May 12.

The U.S. was to produce data on retail sales for April later in the session, as well as reports on import prices and business inventories

Meanwhile, investors remained cautious after pro-Russian separatists in the eastern Ukrainian regions of Donetsk and Luhansk said they may hold a second referendum on joining Russia, similar to the one in Crimea.

Gold, seen as a safe haven investment, usually benefits from geopolitical turmoil.

Elsewhere in metals trading, copper for July delivery shed 0.33%, or 1.0 cent, to trade at $3.139 a pound after data showed that Chinese industrial production and retail sales rose less than expected in April, adding to concerns over a slowdown in the world’s second-largest economy.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

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