Gold, Silver prices may trade negative: Sushil Finance
New York (Feb 3) Gold prices came off their lows on Monday after unexpectedly weaker U.S. economic data spurred some safe-haven buying.
Gold fell more than 1 percent earlier as buyers cashed in gains after the metal posted its biggest monthly rise in three years in January.
Gold attracted safe-haven buyers after data showed that U.S. factory activity had cooled in January, suggesting the economy may have entered the new year on a slightly softer footing than expected.
Traders are awaiting more U.S. data this week for further clues on the timing of a U.S. rate rise, which would be the first in nearly a decade. They are particularly focused on non-farm payrolls numbers due to be released on Friday.
Earlier data on Monday showed U.S. consumer spending recorded its biggest decline since late 2009 in December. U.S. stocks were nearly flat, with the disappointing economic data offset by gains in energy markets.Traders also will be closely watching the new Greek government's attempts to persuade its skeptical euro zone partners to accept a new debt agreement. Britain's finance minister, George Osborne, said on Monday the stand-off over Greek debt was becoming the biggest risk to the global economy.
We expect gold prices are likely to trade negative on the back of US interest rate outlook.
Silver was up 0.1 percent at $17.23 an ounce. U.S. consumer spending recorded its biggest decline since late 2009 in December with households saving the extra cash from cheaper gasoline.
Other data on Monday showed factory activity cooled in January, suggesting the economy may have entered the new year on a slightly softer footing than had been expected.
Nevertheless, upbeat and cash-flush consumers are expected to stepup spending and buoy the economy this year.
We expect Silver prices are likely to trade negative on the back of US interest rate outlook.