IV:Gold Trades Near Lowest Level In Over Two Weeks
Precious Gold traded near its lowest level in more than two weeks as improvement in U.S. data added to speculations the Fed may raise interest rates earlier than anticipated.
Data released yesterday signaled U.S. index of leading indicators climbed the most in four months, while later in the day a manufacturing gauge may show expansion.
Later in the day, eyes will focus on the weekly jobless claims and Philadelphia Fed manufacturing index for April.
Existing home sales for March will be available at 14:00 GMT, with expectations in favor of seeing a drop to 4.56 million from a prior of 4.60 million.
The Fed’s Beige Book released last week illustrated that growth "had picked up" after "lingering winter weather hampered business activity, but the impact was less severe than earlier this year."
Fed Chairman Janet Yellen has said the central bank would be delivering policy stimulus for some time to come, where the timing of raising interest rates would depend on the progress in the labor market and inflation.
On the other hand, the escalating tensions in Ukraine could not provide haven demand on the metal.
The U.S. and its European allies said Moscow is responsible for the tension in East Ukraine and may impose new sanctions if pro-Russian separatists continue occupying government buildings.
Meanwhile, gold is trading around $1289.09 an ounce after hitting a high of $1292.09 and a low of $1285.72.
The shiny metal is currently trading below Daily SMA 200 detected at $1299.55, yet found support at $1283 levels.
The U.S. dollar retreated versus a basket of major currencies after hitting two-week high to hover around 79.98, after hitting a peak of 80.06, according to the dollar index.
Crude oil for June’s delivery slipped for a second session to trade around $103.30 a barrel after touching a high of $103.63.
