Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Gold drops as Ukraine concerns ebb, Fed in focus

Published 03/18/2014, 04:18 AM
Updated 03/18/2014, 04:18 AM
Gold slumps as Ukraine fears recede, Federal Reserve meeting in focus

Gold slumps as Ukraine fears recede, Federal Reserve meeting in focus

Investing.com - Gold prices fell to a four-day low on Tuesday, as concerns over the situation in Ukraine receded and as investors shifted their focus to the Federal Reserve’s upcoming policy meeting.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery fell to a session low of $1,358.10 a troy ounce, the weakest since March 12.

Gold last traded at $1,359.00 an ounce during European morning hours, down 1.01%, or $13.90. Prices lost 0.44%, or $6.10 an ounce, on Monday to settle at $1,372.90.

Futures were likely to find support at $1,345.60 a troy ounce, the low from March 12 and resistance at $1,392.60, the high from March 17.

Meanwhile, silver for May delivery slumped 1.2%, or 25.5 cents, to trade at $21.02 a troy ounce. Silver ended Monday’s session down 0.64%, or 13.8 cents, to settle at $21.27 an ounce.

Demand for safe haven assets weakened as an absence of violence and mild sanctions from the West in response to Sunday's referendum in Crimea fueled appetite for risk-sensitive assets.

Russian President Vladimir Putin was to give a speech later Tuesday, after Crimea voted overwhelmingly in favor of becoming part of Russia in a referendum deemed illegal by the European Union and the U.S.

Uncertainty over the situation in Ukraine has weighed on global sentiment over the past few weeks and boosted demand for the precious metal.

Meanwhile, investors began to turn their attention to the outcome of the Fed’s policy meeting on Wednesday amid expectations for a reduction in its bond buying program to $55 billion from the current $65 billion.

Market players 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 produce data on consumer price inflation as well as reports on building permits and housing starts.

Elsewhere on the Comex, copper futures for May delivery inched up 0.4%, or 1.1 cents, to trade at $2.964 a pound, as investors continued to close out bets on lower prices.

The industrial metal fell to $2.908 a pound on March 12, the lowest since July 2010, as ongoing concerns over the health of China’s economy dampened demand for growth-linked assets.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.