China May industrial output rises 8.8, retail sales up 12.4
Gold has entered the next leg down analyst
Dollar holds near onemonth high
June 16 Reuters Gold traded in a tight range on Wednesday as investors awaited the outcome of a U.S. Federal Reserve meeting for clues on possible tapering of economic support measures, while a firmer dollar weighed on the metal.
Spot gold was steady at 1,859.90 per ounce by 0657 GMT. It fell to its lowest since May 17 at 1,843.99 on Monday.
U.S. gold futures rose 0.3 to 1,862.30.
Gold has been down for a few days and this reflects in the building anticipation that the Feds tapering of QE might start faster than the market is currently expecting, DailyFX currency strategist Ilya Spivak said.
Gold has entered the next leg down. Immediate support at this stage is around 1,850. If we can break that with the help of the Fed meet over the next 24 hours, gold might head towards 1,800.
Making gold more expensive for holders of other currencies, the dollar held steady near a onemonth high against its rivals.
Data on Tuesday showed U.S. retail sales dropped more than expected in May, while producer prices jumped by 6.6 yearoveryear during the month, the largest gain since November 2010.
Recent data showing a spike in U.S. consumer prices have raised concerns over rising inflation. However, Fed officials have said rising inflationary pressures are transitory and ultraeasy monetary settings would stay in place for some time.