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Gold, silver fall to 7-week lows with U.S. data in focus

Published 03/27/2014, 06:25 AM
Gold, silver fall to 7-week lows with U.S. data in focus
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Investing.com - Gold and silver prices fell to the lowest levels since early February on Thursday, as investors looked ahead to key U.S. data later in the session 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 futures for June delivery fell to a session low of $1,292.10 a troy ounce, the weakest level since February 13.

Gold last traded at $1,294.90 an ounce during European morning hours, down 0.65%, or $8.50. Futures lost 0.61%, or $8.00, on Wednesday to settle at $1,303.40 an ounce.

Prices were likely to find support at $1,286.30 a troy ounce, the low from February 13 and resistance at $1,317.00, the high from March 26.

Meanwhile, silver for May delivery fell to $19.58 a troy ounce earlier in the day, the lowest since February 5, before trimming losses to last trade at $19.68, down 0.5%, or 9.8 cents.

Silver ended Wednesday’s session down 1%, or 19.9 cents, to settle at $19.78 an ounce. Futures were likely to find support at $19.43 a troy ounce, the low from February 5 and resistance at $20.14, the high from March 26.

The U.S. is to publish final data on fourth quarter economic growth later in the session. The country is also set to release the weekly report on initial jobless claims and private sector data on pending home sales.

Upbeat U.S. durable goods orders figures on Wednesday indicated that economy is gaining momentum in the wake of a weather-induced slowdown.

Gold and silver have been under heavy selling pressure in recent sessions amid growing expectations that the Federal Reserve will raise interest rates sooner than expected.

Market watchers brought forward expectations for a rate increase by U.S. central bank after Fed Chair Janet Yellen suggested last week that a rate hike might come about six months after the bank’s stimulus program ends, which is expected to happen in the fall.

Elsewhere on the Comex, copper futures for May delivery inched up 0.57%, or 1.7 cents, to trade at $2.982 a pound.

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