Gold prices fell in the early US trading period as market participants await next week’s Federal Open Market Committee meeting and a resolution in Greek debt talks.
Gold for June delivery on the Comex division of the New York Mercantile Exchange was last down $6.90 at $1,187.4 per ounce. Trade has ranged from $1,185.6 to $1,195.4. The 50 day-moving average is currently at $1,192.99, with support near $1,180.
“Bullion’s ability to hold over $1,185, which is the lower end of the recent trading range implied that there is strong support closer to that level,” James Steel, an analyst at HSBC, said. “We see gold as likely to remain in sideways trading in the near-term.”
In US data today, core durable goods orders fell 0.2 percent in March, missing the forecast of an increase of 0.2 percent. However, durable goods orders rose four percent, with analysts only expecting an increase of 0.7 percent in March.
Market participants are turning their attention to next Wednesday’s Federal Open Market Committee (FOMC) statement. Investors will look for possible signs of tightening of monetary policy as the FOMC decides exactly when to start normalising.
Eurozone ministers today are attending a summit to discuss Greece’s possible default on its debt obligations but positive headlines have been supportive of the single currency, which may be reducing gold’s safe-haven appeal.
In wider markets, Germany’s DAX was up 0.3 percent, while France’s CAC-40 was unchanged, while the euro was up 0.24 percent at 1.0852 agains the dollar.
As for the other precious metals, Comex silver for May delivery was down nine cents per ounce – trade has ranged from $15.715 to $15.885. Platinum for June delivery on the Nymex fell $7.90 to $1,128.80, while the most actively traded palladium contract was at $774.10, up $4.20.
Four month highs in oil prices are providing all commodities with a small boost this morning, reports of further Saudi-led airstrikes on Houthi rebels in Yemen is adding to building sentiment on the market.
Light sweet crude (WTI) futures were down eight cents or less than one percent at $57.67 per barrel in the most active contract.
(Editing by Tom Jennemann)
The post Gold prices down ahead of FOMC meeting, Greek resolution appeared first on The Bullion Desk.
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