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Gold futures lower after upbeat U.S. data

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Investing.com - Gold futures were lower for the fourth consecutive session on Wednesday as better-than-forecast U.S. economic data dampened demand for the precious metal, but losses were limited as concerns over outlook for the euro zone continued.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery slipped 0.10% to USD1,595.75 per troy ounce.

Gold futures were likely to test support USD1,576.60, the low of March 14 and resistance at USD1,613.46, Monday's high.

Data on Tuesday showed that U.S. durable goods orders rose 5.7% in February from a month earlier, and U.S. home prices posted their biggest year-on-year gain in six-and-a-half years in January, adding to signs that the country's economic recovery is deepening.

But gold prices found support amid worries over the financial stability of the euro zone following Cyprus's last minute bailout and ongoing political uncertainty in Italy.

Investors remained concerned that the bailout deal for Cyprus could set a precedent for future bailouts in larger euro zone states, with big bank depositors and senior bond holders forced to suffer losses.

In Italy, talks aimed at forming a coalition government continued after general elections in late February resulted in a political stalemate, amid growing concerns that the country may have to return to the polls.

Gold's losses were also limited after a report by the International Monetary Fund on Tuesday showed the world's central banks continued to stock up on bullion in February. The IMF said central banks have been net buyers of gold for 23 straight months through January.

Elsewhere, Comex silver for May delivery fell 1.28% to USD28.313 per ounce while copper for May delivery edged up 0.07% to USD3.445 per ounce.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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