 | Gold, silver decline as investors await U.S. GDP data, FOMC decision
Gold and silver prices declined on Wednesday, as investors remained cautious ahead of the release of the Federal Reserve's policy statement and key U.S. economic data later in the day.
Gold, silver decline as investors await U.S. GDP data, FOMC decisionGold, silver lower ahead of U.S. growth data, Fed outcome
On the Comex division of the New York Mercantile Exchange, gold for June delivery held in a tight range between $1,289.70 a troy ounce and $1,296.60 an ounce.
Gold last traded at $1,292.30 an ounce during European morning hours, down 0.31%, or $4.00. Futures declined 0.21%, or $2.70 an ounce, on Tuesday to settle at $1,296.30.
Gold prices were likely to find support at $1,268.40 a troy ounce, the low from April 24 and resistance at $1,306.60, the high from April 28.
Meanwhile, silver for July delivery declined 0.67%, or 13.0 cents, to trade at $19.40 a troy ounce. Silver ended Tuesday's session down 0.41%, or 8.1 cents, to settle at $19.53 an ounce.
Silver was likely to find support at $18.95 an ounce, the low from April 24 and resistance at $19.63, the high from April 29.
Market players prepared for the outcome of the Fed's policy meeting later in the day, amid expectations for another $10 billion reduction in the central bank's now $65-billion-a-month stimulus program.
Investors also looked ahead to key U.S. data due later in the session for further indications on the strength of the economy.
The U.S. is to release preliminary data on first quarter GDP, as well as the ADP report on private sector job creation. The U.S. is also to release data on manufacturing activity in the Chicago region.
Traders were also turning their attention to Friday's U.S. jobs report for April, which was expected to indicate that the recovery in the labor market is continuing.
Markets largely shrugged off events in Ukraine, where pro-Russian separatists stormed regional government offices in the eastern city of Luhansk on Tuesday.
Elsewhere in metals trading, copper for July delivery inched up 0.07%, or 0.2 cents, to trade at $3.075 a pound.
Copper traders were awaiting the release of China's official manufacturing purchasing managers' index, due on Thursday, which is expected to rise to 50.5 for April from 50.3 for March.
The Asian nation is the world's largest copper consumer, accounting for almost 40% of world consumption last year. |
