Gold’s losses deepen after Putin speech, U.S. data

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Investing.com - 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 futures for April delivery fell to a session low of $1,351.20 a troy ounce, the weakest since March 12.

Gold last traded at $1,354.20 an ounce during U.S. morning hours, down 1.36%, or $18.70. Prices lost 0.44%, or $6.10 an ounce, on Monday to settle at $1,372.90.

Futures were likely to find support at $1,345.60 a troy ounce, the low from March 12 and resistance at $1,392.60, the high from March 17.

Meanwhile, silver for May delivery plunged 2.55%, or 53.8 cents, to trade at $20.73 a troy ounce. Silver ended Monday's session down 0.64%, or 13.8 cents, to settle at $21.27 an ounce.

Demand for safe haven assets weakened after President Putin said that Russia isn't seeking "a partition of Ukraine", signaling that Russia's moves in Ukraine would be limited.

The speech came one day after the Russian president recognized the results of Sunday's referendum in Crimea, which saw a majority of voters chose to split from Ukraine.

The European Union and the U.S. have declared the vote illegal and imposed sanctions.

Meanwhile, data released earlier the number of building permits issued in the U.S. rose to a four-month high in February, rebounding after a sharp drop in January.

The number of building permits issued last month jumped 7.7% to 1.018 million units following a 16.8% fall in in January, as a result of severe winter weather.

But, U.S. housing starts fell 0.2% last month to hit a seasonally adjusted 907,000 units, disappointing expectations for an increase of 3.4% to 910,000 units.

Investors began to turn their attention to the outcome of the Federal Reserve's policy meeting on Wednesday amid expectations for a reduction in its bond buying program to $55 billion from the current $65 billion.

Elsewhere on the Comex, copper futures for May delivery inched down 0.1%, or $0.003 cents, to trade at $2.949 a pound.

The industrial metal fell to $2.908 a pound on March 12, the lowest since July 2010, as ongoing concerns over the health of China's economy dampened demand for growth-linked assets.

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This article appears in: Investing , Forex and Currencies

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