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Gold’s losses deepen after U.S. retail sales data, silver plunges 4%

Published 12/12/2013, 09:52 AM
Gold’s losses deepen after U.S. retail sales data, silver plunges 4%
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Investing.com - Losses for gold and silver prices deepened on Thursday, after stronger-than-expected U.S. retail sales data underlined expectations the Federal Reserve will start tapering its bond-buying program at next week’s policy meeting.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,226.30 a troy ounce during U.S. morning trade, down 2.45%. Comex gold prices fell to a session low of USD1,224.40 a troy ounce earlier, the weakest level since December 6.

Gold futures were likely to find support at USD1,211.20 a troy ounce, the low from December 6 and resistance at USD1,262.90, the high from December 11.

The February contract settled 0.31% lower on Wednesday to end at USD1,257.20 a troy ounce.

Meanwhile, silver for March delivery plunged 4.3% to trade at USD19.48 a troy ounce. Futures were likely to find support at USD19.20 a troy ounce, the low from December 6 and resistance at USD20.48, the high from December 11.

The U.S. Department of Commerce said in a report earlier that U.S. retail sales rose 0.7% in November, above expectations for a 0.6% increase. Core retail sales increased 0.4%, beating forecasts for a 0.2% gain.

Separately, the Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week rose to a nine-week high of 368,000, compared to expectations for an increase to 320,000 from the previous week’s revised total of 300,000.

The mixed batch of U.S. economic data did little to alter expectations that the Federal Reserve will start to scale back its stimulus program next week. The central bank is scheduled to meet December 17-18 to review the economy and assess monetary policy.

Gold is down approximately 28% this year, while silver has lost almost 36%, as solid U.S. economic data underlined expectations the Fed will begin curbing stimulus.

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