Gold edges lower after World Bank raises global growth forecast

Investing.com - Gold prices were lower on Wednesday, after the World Bank upgraded its global economic growth forecasts.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,239.60 a troy ounce during European morning trade, down 0.45%. Gold prices held in a range between USD1,238.00 a troy ounce and USD1,244.90 a troy ounce.

The February contract settled 0.46% lower on Tuesday to end at USD1,245.40 a troy ounce as upbeat December retail sales data helped offset concerns about the U.S. economy following Friday's weak jobs report.

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 declined 0.9% to trade at USD20.10 a troy ounce. The March contract ended Tuesday’s session with a loss of 0.51% to settle at USD20.28 a troy ounce.

In its bi-annual Global Economic Prospects report released earlier, the World Bank said that global growth is set to accelerate 3.2% this year, compared with a June projection of 3% and up from 2.4% in 2013.

The forecast for developed nations was raised to 2.2% from 2%, citing improved outlooks for both the U.S. and the euro zone.

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. The U.S. is to release data on producer price inflation and a report on manufacturing activity in the New York region.

Investors 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. 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 0.75% to trade at USD3.312 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.