Investing.com - Gold and silver prices rebounded from the previous session’s heavy losses on Tuesday, as 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.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery held in a tight range between $1,308.60 a troy ounce and $1,317.90 an ounce.
Gold last traded at $1,316.40 an ounce during European morning hours, up 0.4%, or $5.30.
Futures fell to $1,308.50 an ounce on Monday, the lowest since February 20, before trimming losses to settle at $1,311.20, down 1.86%, or $24.80. Prices were likely to find support at $1,307.70 a troy ounce, the low from February 20 and resistance at $1,335.70, the high from March 24.
Meanwhile, silver for May delivery picked up 0.49%, or 9.8 cents, to trade at $20.16 a troy ounce.
Silver slumped to $19.90 an ounce on Monday, the lowest since February 7, before coming off the lows to settle at $20.06 an ounce, down 1.2%, or 24.3 cents.
Silver futures were likely to find support at $19.90 a troy ounce, the low from March 24 and resistance at $20.58, the high from March 21.
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.
The comments prompted investors to bring forward expectations for a rate hike to as soon as March of next year.
Investors looked ahead to U.S. data on house price inflation and consumer confidence, as well as a report on new home sales later Tuesday.
Elsewhere on the Comex, copper futures for May delivery rallied 1.45%, or 4.2 cents, to trade at $2.988 a pound, amid growing hopes that China will unveil fresh stimulus measures to boost slowing economic growth.
Data released on Monday showed that Chinese manufacturing activity deteriorated for a third successive month in March.
The industrial metal fell to $2.877 a pound on March 19, the lowest since July 2010, amid growing concerns over the health of China’s economy.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.