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Gold edges lower ahead of U.S. data, Ukraine remains in focus

Published 03/05/2014, 03:21 AM
Gold declines ahead of U.S. data, Ukraine remains in focus
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Investing.com - Gold prices extended losses from the previous session on Wednesday, as tensions between Russia and the Ukraine appeared to subside, while traders awaited the release of key U.S. economic data later in the session.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery held in a range between $1,333.20 a troy ounce and $1,338.20 an ounce.

Prices last traded at $1,334.80 an ounce during European morning hours, down 0.25%, or $3.10. Gold futures lost 0.92%, or $12.40 an ounce, to settle at $1,337.90 on Tuesday.

Prices were likely to find support at $1,319.30 a troy ounce, the low from February 28 and resistance at $1,355.00, the high from March 3.

Meanwhile, silver for May delivery shed 0.2%, or $0.04 cents, to trade at $21.17 a troy ounce. The May contract ended Tuesday’s session down 1.22%, or $0.26 cents, to settle at $21.22 an ounce.

Gold prices weakened on Tuesday after Russian President Vladimir Putin said that there was "no need yet" for Russia to exercise its authority, adding that any force used would be a last resort.

The remarks came after Russia’s defense minister ordered troops engaged in military exercises close to Ukraine’s borders to return to their bases.

The comments eased concerns over a military conflict in Ukraine, dampening demand for safe-haven assets.

Meanwhile, 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.

The U.S. is to release the ADP report on private sector job creation, which leads the government’s nonfarm payrolls report by two days, while the ISM is to publish a report service sector activity.

A recent series of disappointing U.S. economic indicators have sparked concerns that the recovery has lost momentum since the end of last year as inclement winter weather weighed on growth.

Elsewhere on the Comex, copper futures for May delivery inched up 0.1% to trade at $3.218 a pound, as China’s National People’s Congress annual meeting kicked off on Wednesday.

China has set its gross domestic product growth target for 2014 at 7.5%, as widely expected, and will keep consumer inflation at 3.5%, Chinese Premier Li Keqiang said on Wednesday.

The latest meeting of the legislature, the first to be overseen by President Xi Jinping and Premier Keqiang, comes amid lingering concerns over the health of the country’s economy.

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

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