Gold ticked higher on Wednesday on a softer dollar and weak U.S. economic data, but the metal traded in a tight range as investors waited for the Federal Reserve's policy decision later in the session.
Spot gold XAU= had risen 0.2 percent to $1,245.40 an ounce by 0041 GMT, following a 0.4-percent gain in the previous session.
Data on Tuesday showed orders for long-lasting U.S. manufactured goods rebounded far less than expected in March as demand for automobiles, computers and electrical goods slumped, suggesting the downturn in the factory sector was far from over.
Global gold demand tumbled by 24 percent year on year to 781 tonnes in the first three months of the year, its weakest quarter in seven years, as buying from leading consumers India and China plummeted, GFMS said in the first-quarter update to its Gold Survey 2016.
China's net gold imports via main conduit Hong Kong climbed to a three-month high in March on restocking after the new year holiday, but market sources said consumer demand remained soft.
Gold prices ended the U.S. day session firmer Tuesday. The key “outside markets” were in a bullish posture for the precious metals markets, as the U.S. dollar index was lower and crude oil prices were solidly higher. Gold prices continue to show resilience despite a lack of major, fresh bullish fundamental news in the marketplace. June Comex gold was last up $3.30 at $1,243.50 an ounce. July Comex silver was last up $0.101 at $17.16 an ounce.
Technically, June gold futures prices closed nearer the session high. The gold bulls have the overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,272.40. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,225.00. First resistance is seen at today’s high of $1,246.50 and then at $1,250.00. First support is seen at today’s low of $1,232.70 and then at $1,225.00. Wyckoff’s Market Rating: 6.0
Reference: Reuters, Kitco
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