Gold continued to decline in the Asian session this morning giving up $3.00 to trade at 1356.00 ahead of the FOMC decision. Gold prices fell to the lowest
Gold continued to decline in the Asian session this morning giving up $3.00 to trade at 1356.00 ahead of the FOMC decision. Gold prices fell to the lowest levels of the session on Tuesday, as investor sentiment improved following a speech by Russian President Vladimir Putin, but mixed U.S. data on housing and inflation continued to weigh. On the Comex division of the New York Mercantile Exchange, gold fell to a session low of $1,351.20 a troy ounce, the weakest since March 12. Gold prices traded moderately lower with the extension in weakness owing to ease of tensions in Ukraine after Russian President Vladimir Putin said he is not seeking to split up Ukraine. Alongside this, Gold was pressurized yesterday after the stronger set of economic data from the US on the housing sector front. With the investment demand too remaining stable in the fresh week, there are no major triggers for Bullion towards the positive side from here. Traders are now focused on the outcome of the two day FOMC meeting which is already weighing on gold as the bank is most likely to continue trimming down the bond purchase program.
Base metals on the LME traded on a positive note as a result of ease of geopolitical tensions between Ukraine and Russia which supported an upside in the prices. Further, upbeat market sentiments in later part of the trade acted as a positive factor. Favorable economic data from US continued with positive movement in the prices. Housing data in the US signaled growth in the market as building permits reported better than forecast, which is a leading indicator for new home sales and construction. However, mixed LME inventories, strength in the DX along with weak ZEW economic sentiments data from Eurozone capped sharp gains in the prices. Copper declined this morning to trade at 2.943 giving up 10 points. LME copper prices remained in a range to higher on Tuesday as positive US data pushed the prices bit higher. US building permits moved higher but inflation level eased along with housing starts. Fear of Fed continuing its tapering in today’s FOMC meet has kept the copper prices in a range. The looming bankruptcy of a Chinese developer owing billions of yuan to domestic banks has raised worries that a softening property market is heightening risks for the financial system. Traders can expect copper prices to move in a range to down for the day as fear of Fed continuing its bond tapering from US and worries over China can push the prices down.