Forex - EUR/USD slides after Beige Book

The U.S. dollar extended its gains against the euro in late U.S. trading Wednesday after the Federal Reserve’s Beige Book business survey said the world’s largest economy is growing at a "modest to moderate pace." 

In U.S. trading Wednesday, EUR/USD declined 0.35% to 1.3119. The pair was likely to find support at 1.3049, Tuesday’s low and resistance at 1.3205, the high of July 11. 

The Fed’s Beige Book business survey, which encompasses the central bank’s 12 regional banks, showed manufacturing expanded in most regions since the last report. The report showed modest growth across 11 districts with Dallas showing strong growth. 

Earlier Wednesday, Fed Chairman Ben Bernanke said the pace of the central bank’s bond purchases are not a “preset course” In prepared remarks released before his testimony to Congress later in the day, Fed Chair Bernanke said the pace of the central bank’s bond purchases are not a “preset course”.

"I emphasize that, because our asset purchases depend on economic and financial developments, they are by no means on a preset course," Bernanke said.

Bernanke reiterated that the Fed will continue to maintain its accommodative monetary policy for the foreseeable future. 

Elsewhere, EUR/JPY inched up 0.05% to 130.53 while EUR/GBP shed 0.75% to 0.8621.

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Forex - GBP/USD holds gains after Bernanke remarks

The pound held gains against the U.S. dollar on Wednesday, trading near two-week highs after comments by Federal Reserve Chairman Ben Bernanke sent the greenback lower, while the minutes of the Bank of England's latest meeting continued to support demand for sterling. 

GBP/USD hit 1.5244 during U.S. morning trade, the pair's highest since July 4; the pair subsequently consolidated at 1.5221, gaining 0.42%. 

Cable was likely to find support at 1.5079, the session low and resistance at 1.5304, the high of July 3. 

During prepared testimony to the Financial Services Committee in Congress, Bernanke said the bank’s bond purchase program could be tapered at a faster pace, slower pace or even temporarily increased depending on economic and financial developments.

Bernanke said the economic recovery was continuing at a moderate pace but reiterated that accommodative monetary policy will still be necessary for the foreseeable future. 

Earlier Wednesday, the minutes of the BoE's July meeting showed that policymakers voted unanimously to leave the size of bank’s GBP25 billion asset purchase program unchanged and to keep interest rates on hold at 0.5%.

The BoE took steps to give forward guidance to markets on interest rates at its July meeting, indicating that interest rates are likely to remain at record low levels, given weakness in the U.K.’s economic recovery.

Meanwhile, the Office for National Statistics said that the claimant count fell by a seasonally adjusted 21,200 in June, better than expectations for a decline of 8,000.

The previous month’s figure was revised to a drop of 16,200 people from a previously reported decrease of 8,600.

The rate of unemployment held steady at 7.8% in May, in line with expectations and unchanged from April. 

The ONS said average earnings in the U.K. rose by a seasonally adjusted 1.7% in May, above expectations for a 1.4% increase, after rising by 1.3% in the previous month. 

Sterling was higher against the euro with EUR/GBP dropping 0.57%, to hit 0.8635. 

Also Wednesday, official data showed that the number of building permits issued in June fell 7.5% to a seasonally adjusted 0.911 million, confounding expectations for an increase of 1.5% to 1.000 million units.

U.S. housing starts plunged by 9.9% last month to hit a seasonally adjusted 0.836 million, compared to expectations for an increase of 3.9% to 0.959 million.

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Forex - EUR/USD remains lower after Bernanke remarks

The euro remained lower against the dollar on Wednesday after Federal Reserve Chairman Ben Bernanke said the central bank expects to start tapering bond purchases by the end of the year, but added that there was no “preset course.”

EUR/USD hit 1.3052 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.3133, shedding 0.22%.

The pair was likely to find support at 1.3049, Tuesday’s low and resistance at 1.3205, the high of July 11.

Bernanke said the bank’s bond purchase program could be tapered at a faster pace, slower pace or even temporarily increased depending on economic and financial developments.

Bernanke said the economic recovery was continuing at a moderate pace but reiterated that accommodative monetary policy will still be necessary for the foreseeable future.

The comments came during prepared testimony to the Financial Services Committee in Congress.

Meanwhile, official data showed that the number of building permits issued in the U.S. fell unexpectedly in June, while housing starts tumbled.

The number of building permits issued in June fell 7.5% to a seasonally adjusted 0.911 million, confounding expectations for an increase of 1.5% to 1.000 million units.

U.S. housing starts plunged by 9.9% last month to hit a seasonally adjusted 0.836 million, compared to expectations for an increase of 3.9% to 0.959 million.

The euro was lower against the stronger pound, with EUR/GBP down 0.58% to 0.8633.

The pound strengthened broadly on Wednesday after the minutes of the Bank of England’s July meeting showed that policymakers voted unanimously to keep the bank’s quantitative easing program unchanged.

Two policymakers who had previously voted in favor of more stimulus said it remained "warranted".

Meanwhile, official data showed that the number of people claiming unemployment benefits in the U.K. fell by a seasonally adjusted 21,200 in June, better than expectations for a decline of 8,000.

The rate of unemployment held steady at 7.8% in May, in line with expectations and unchanged from April. 

Elsewhere, the single currency was slightly higher against the yen, withEUR/JPY rising 0.16% to 130.63.

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Gold futures climb to 3-week high after Bernanke remarks

Gold futures rose to a three-week high on Wednesday, after Federal Reserve Chairman Ben Bernanke said the pace of the central bank’s bond purchases are not a “preset course”.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,290.65 a troy ounce during U.S. morning hours, up 0.1% on the day.

Comex gold prices rose by as much as 0.5% earlier in the day to hit a session high of USD1,297.85 a troy ounce, the strongest level since June 24.

Gold futures were likely to find support at USD1,237.05 a troy ounce, the low from July 8 and near-term resistance at USD1,301.75, the high from June 21.

In prepared remarks released before his testimony to Congress later in the day, Fed Chair Bernanke said the pace of the central bank’s bond purchases are not a “preset course”.

"I emphasize that, because our asset purchases depend on economic and financial developments, they are by no means on a preset course," Bernanke said.

Bernanke reiterated that the Fed will continue to maintain its accommodative monetary policy for the foreseeable future.

He added that the central bank may taper its USD85-billion-a-month asset-purchase program later this year and halt it around mid-2014.

Bernanke said the pace of purchases could be maintained longer if conditions are less favorable.

Bernanke will testify before lawmakers at 10 a.m. Eastern time.

Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its quantitative easing program sooner-than-expected.

Gold prices rallied 5% last week, the biggest weekly gain since October 2011, after Bernanke said the central bank will continue to maintain accommodative monetary policy for the foreseeable future.

The precious metal is on track to post a loss of 23% on the year amid speculation the Fed will start to unwind its stimulus program by the year's end.

Elsewhere on the Comex, silver for September delivery fell 0.8% to trade at USD19.77 a troy ounce, while copper for September delivery tumbled 1.4% to trade at USD3.143 a pound.

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Bernanke says Fed tapering not “on a preset course”

In prepared remarks released before his testimony to Congress later in the day, Federal Reserve Chairman Ben Bernanke said the pace of the central bank’s bond purchases are not a “preset course”.

"I emphasize that, because our asset purchases depend on economic and financial developments, they are by no means on a preset course," Bernanke said.

Bernanke reiterated that the Fed will continue to maintain its accommodative monetary policy for the foreseeable future.

He added that the central bank may taper its USD85-billion-a-month asset-purchase program later this year and halt it around mid-2014.

Bernanke said the pace of purchases could be maintained longer if conditions are less favorable.

Bernanke will testify before lawmakers at 10 a.m. Eastern time.

Following Bernanke’s comments, the U.S. dollar was little changed against the euro, with EUR/USD easing down 0.02% to trade at 1.3165.

Meanwhile, U.S. stock future indices were higher. The Dow Jones Industrial Average futures rose 0.1%, S&P 500 futures pointed to a gain of 0.3%, while the Nasdaq 100 futures pointed to an increase of 0.3% at the open.

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U.S. building permits drop 7.5% in June; housing starts tumble 9.9%

The number of building permits issues in the U.S. fell unexpectedly in June, while housing starts tumbled, official data showed Wednesday. 

In a report, the U.S. Census Bureau that the number of building permits issued in June fell 7.5% to a seasonally adjusted 0.911 million, confounding expectations for an increase of 1.5% to 1.000 million units.

Building permits issued in May totaled 0.985 million units.

The report also showed that U.S. housing starts plunged by 9.9% last month to hit a seasonally adjusted 0.836 million, compared to expectations for an increase of 3.9% to 0.959 million.

Housing starts for May were revised up to 0.928 million units from a previously reported 0.914 million units.

Following the release of the data, the U.S. dollar trimmed gains against the euro, with EUR/USD shedding 0.05% to trade at 1.3155.

Meanwhile, U.S. stock future indices were mixed. The Dow Jones Industrial Average futures eased down 0.1%, S&P 500 futures pointed to a gain of 0.1%, while the Nasdaq 100 futures pointed to an increase of 0.1% at the open.

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Forex - GBP/USD higher after BoE minutes, Bernanke eyed

The pound rose to session highs against the dollar on Wednesday after the minutes of the Bank of England’s July meeting showed that policymakers voted unanimously to keep the bank’s quantitative easing program unchanged.

GBP/USD hit 1.5244 during European afternoon trade, the pair’s highest since July 4; the pair subsequently consolidated at 1.5216, up 0.39%.

Cable was likely to find support at 1.5043, Tuesday’s low and resistance at 1.5287 the high of July 4

BoE policymakers voted to leave the size of bank’s GBP25 billion asset purchase program unchanged and to keep interest rates on hold at 0.5% at the first meeting under the leadership of new Governor Mark Carney.

Two policymakers who had previously voted in favor of more stimulus said it remained "warranted".

“An expansion of the asset purchase program remained one means of injecting stimulus, but the Committee would be investigating other options during the month, and it was therefore sensible not to initiate an expansion at this meeting” the minutes said.

The BoE took steps to give forward guidance to markets on interest rates at its July meeting, indicating that interest rates are likely to remain at record low levels, given weakness in the U.K.’s economic recovery.

Meanwhile, official data showed that the number of people claiming unemployment benefits in the U.K. declined significantly more-than-expected in June and the unemployment rate remained unchanged.

The Office for National Statistics said that the claimant count fell by a seasonally adjusted 21,200 in June, better than expectations for a decline of 8,000.

The previous month’s figure was revised to a drop of 16,200 people from a previously reported decrease of 8,600.

The rate of unemployment held steady at 7.8% in May, in line with expectations and unchanged from April. 

The ONS said average earnings in the U.K. rose by a seasonally adjusted 1.7% in May, above expectations for a 1.4% increase, after rising by 1.3% in the previous month.

The pound’s gains were capped ahead of keenly anticipated testimony on monetary policy by Federal Reserve Chairman Ben Bernanke later in the global day, amid speculation over the timing of a possible reduction to the bank’s USD85 billion-a-month bond buying program.

Bernanke was expected to reiterate that the bank could start scaling back its asset purchase program by the end of this year if the economy continues to pick up, but that interest rates will remain at record lows for the foreseeable future.

Elsewhere, sterling rose to session highs against the euro, withEUR/GBP dropping 0.64% to 0.8628.

The U.S. was to release official data on building permits and housing starts later Wednesday.

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Forex - EUR/USD lower before Bernanke

The euro was lower against the dollar in subdued trade on Wednesday ahead of testimony on monetary policy by Federal Reserve Chairman Ben Bernanke later in the trading day.

EUR/USD hit 1.3052 during European afternoon trade, the session low; the pair subsequently consolidated at 1.3130, shedding 0.24%.

The pair was likely to find support at 1.3049, Tuesday’s low and resistance at 1.3205, the high of July 11.

Investors were awaiting Bernanke's semiannual congressional testimony amid speculation over the timing of a possible reduction to the bank’s USD85 billion-a-month bond buying program.

The dollar fell sharply last week after Bernanke said the U.S. economy still needed monetary stimulus.

Bernanke was expected to reiterate that the bank could start scaling back its asset purchase program by the end of this year if the economy continues to pick up, but that interest rates will remain at record lows for the foreseeable future.

Elsewhere, the euro fell to session lows against the pound, withEUR/GBP down 0.655 to 0.8627.

The pound strengthened broadly after the minutes of the Bank of England’s July meeting showed that policymakers voted unanimously to keep the bank’s quantitative easing program unchanged.

Two policymakers who had previously voted in favor of more stimulus said it remained "warranted".

Meanwhile, official data showed that the number of people claiming unemployment benefits in the U.K. fell by a seasonally adjusted 21,200 in June, better than expectations for a decline of 8,000.

The rate of unemployment held steady at 7.8% in May, in line with expectations and unchanged from April. 

The single currency was higher against the yen, with EUR/JPY rising 0.42% to 130.96.

The U.S. was to release official data on building permits and housing starts later Wednesday.

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European stocks hold gains as Bernanke speech approaches; Dax up 0.20%

European stocks held gains on Wednesday, as markets awaited Federal Reserve Chairman Ben Bernanke's testimony to Congress, scheduled later in the day. 

During European afternoon trade, the EURO STOXX 50 climbed 0.41%, France’s CAC 40 gained 0.44%, while Germany’s DAX 30 edged up 0.17%. 

Markets were jittery ahead of Bernanke's testimony on monetary policy amid speculation over the timing of a possible reduction to the bank’s USD85 billion-a-month bond buying program.

Stocks rallied last week after Bernanke said the U.S. economy still needed monetary stimulus. 

Bernanke was expected to reiterate that the bank could start scaling back its asset purchase program by the end of this year if the economy continues to pick up, but interest rates will remain at record lows for the foreseeable future. 

Financial stocks turned broadly lower, as French lenders BNP Paribas and Societe Generale declined 0.18% and 1.07%, while Germany's Deutsche Bank slipped 0.13%. 

Peripheral lenders added to losses, with Spanish banks BBVA and Banco Santander shed 0.38% and 0.62% respectively, while Italy's Unicredit fell 0.28%. 

Elsewhere, L’Oreal plummeted 3.03% after the cosmetics maker said quarterly sales advanced 5.2%, missing market estimates due to a slowdown in North American revenue. 

In London, FTSE 100 eased up 0.08%, after the minutes of the Bank of England’s July meeting showed that policymakers voted unanimously to keep the bank’s quantitative easing program unchanged. 

Mining giants BHP Billiton and Rio Tinto remained sharply higher, jumping 1.88% and 3.82% respectively, while Anglo American rallied 1.51% and Randgold Resources surged 3.66%. 

BHP Billiton said earlier that iron-ore production rose to a record 47.7 million metric tons in the second quarter, from 40.9 million tons a year earlier. 

Meanwhile, financial stocks were mixed, as shares in Barclays fell 0.23% and HSBC Holdings edged down 0.16%, while Lloyds Banking and the Royal Bank of Scotland gained 0.55% and 0.64%. 

According to the U.S. Federal Energy Regulatory Commission, Barclays and four former traders must pay a combined USD487.9 million in fines and penalties, in an order tied to an investigation of alleged manipulation of energy markets. 

In the U.S., equity markets pointed to a moderately lower open. The Dow Jones Industrial Average futures pointed to a 0.16% fall, S&P 500 futures signaled a 0.14% loss, while the Nasdaq 100 futures indicated a 0.01% dip. 

Later in the day, the U.S. was to release official data on building permits and housing starts.

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Bank of America Q2 EPS USD0.32, beats expectations of USD0.26

Bank of America, the second largest U.S. bank, reported better-than-expected second quarter earnings ahead of Wednesday’s opening bell, sending its shares higher in pre-market trade.

Earlier in the day, in its second quarter earnings report, Bank of America said earnings per share came in at USD0.32, above expectations for USD0.26.

The bank’s first quarter adjusted revenue totaled USD22.73 billion, broadly in line with expectations for revenue of USD22.71 billion.

Immediately after the earnings announcement, Bank of America shares rose 0.6% in trading prior to the opening bell.

Meanwhile, U.S. stock futures pointed to a steady open. The Dow Jones Industrial Average futures indicated a flat open, S&P 500 futures were little changed, while the Nasdaq 100 futures indicated a gain of 0.1% at the open.

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U.S. futures slip lower as focus turns to Bernanke; Dow Jones down 0.16%

U.S. stock futures pointed to a lower open on Wednesday, as markets were jittery ahead of Federal Reserve Chairman Ben Bernanke's testimony to Congress later in the day. 

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.16% fall, S&P 500 futures signaled a 0.14% loss, while the Nasdaq 100 futures indicated a 0.01% dip. 

Market participants were eyeing Bernanke's testimony on monetary policy amid speculation over the timing of a possible reduction to the bank’s USD85 billion-a-month bond buying program.

Stocks rallied last week after Bernanke said the U.S. economy still needed monetary stimulus. 

Bernanke was expected to reiterate that the bank could start scaling back its asset purchase program by the end of this year if the economy continues to pick up, but interest rates will remain at record lows for the foreseeable future. 

Tech stocks were expected to be active, amid reports Apple is developing ad-skipping technology that would let owners of its Apple TV set-top box and future television devices watch shows without commercials. 

Internet-related stocks were also likely to be in focus, as Google was said to be holding discussions with media companies to introduce its own online-television service. 

According to Bloomberg, the product would offer viewers television packages that bypass cable subscriptions. Google shares were still down 0.15% in after-hour trade. 

Yahoo was also down in extended trading, sliding 0.30%, after giving a revenue forecast of USD1.06 to USD1.1 billion in the current quarter, falling short of analysts’ estimates. 

In company news, Apollo Global Management decided to sell its remaining shares in Realogy Holdings, exiting its investment in the residential brokerage company. 

Other stocks expected to be in focus included Bank of America, Bank of NY Mellon, Northern Trust, PNC Financial U.S. Bancorp, Abbott Laboratories and Mattel, all scheduled to report second quarter earnings later in the day. 

Across the Atlantic, European stock markets were lower. The EURO STOXX 50 declined 0.42%, France’s CAC 40 slid 0.38%, Germany's DAX retreated 0.47%, while Britain's FTSE 100 shed 0.40%. 

During the Asian trading session, Hong Kong's Hang Seng Index added 0.28%, while Japan’s Nikkei 225 Index edged up 0.11%. 

Later in the day, the U.S. was to release official data on building permits and housing starts.

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Dollar mixed ahead of Benanke, BoE minutes boost pound

The dollar was mixed against the other major currencies on Wednesday ahead of testimony on monetary policy by Federal Reserve Chairman Ben Bernanke later in the trading day.

During European late morning trade, the dollar edged higher against the euro, with EUR/USD sliding 0.08% to 1.3153.

Investors were awaiting Bernanke's semiannual congressional testimony amid speculation over the timing of a possible reduction to the bank’s USD85 billion-a-month bond buying program.

The dollar fell sharply last week after Bernanke said the U.S. economy still needed monetary stimulus.

Bernanke was expected to reiterate that the bank could start scaling back its asset purchase program by the end of this year if the economy continues to pick up, but that interest rates will remain at record lows for the foreseeable future.

Elsewhere, the dollar was lower against the pound, with GBP/USD rising 0.33% to 1.5206. 

The pound touched session highs against the dollar after the minutes of the Bank of England’s July meeting showed that policymakers voted unanimously to keep the bank’s quantitative easing program unchanged.

Two policymakers who had previously voted in favor of more stimulus said it remained "warranted".

Meanwhile, official data showed that the number of people claiming unemployment benefits in the U.K. fell by a seasonally adjusted 21,200 in June, better than expectations for a decline of 8,000.

The rate of unemployment held steady at 7.8% in May, in line with expectations and unchanged from April. 

The dollar was higher against the yen, with USD/JPY climbing 0.54% to 99.62. 

Earlier Wednesday, the minutes of the Bank of Japan’s June meeting said the economy was expected to return to a moderate recovery path and reiterated that the bank’s easing program would remain in place for as long as necessary.

The dollar edged lower against the Swiss franc, with USD/CHF dipping 0.06% to 0.9383. 

The ZEW index of Swiss economic sentiment ticked up to 4.8 in July from 2.2 in June, data on Wednesday showed, as expectations for economic growth remained cautious. Analysts had expected a reading of 6.0.

The greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD losing 0.46% to trade at 0.9207, NZD/USD down 0.47% to 0.7855 and USD/CAD up 0.27% to 1.0395.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.10% to 82.71. 

The U.S. was to release official data on building permits and housing starts later Wednesday.

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Asian stocks mostly higher ahead of Bernanke comments; Nikkei down 0.58%

Most Asian stocks traded higher Wednesday, rebuffing Tuesday’s slack performance in the U.S., as traders await headlines from congressional testimony by Federal Reserve Chairman Ben Bernanke later Wednesday. 

In Asian trading Wednesday, Japan’s Nikkei 225 fell 0.58% althoughUSD/JPY traded higher. Japan’s Topix also traded modestly lower as Japanese stocks appeared to succumb to some profit-taking. 

Yen traders are also looking toward this weekend’s upper house elections in Japan in which Prime Minister Shinzo Abe’s Liberal Democratic Party is expected to gain control, thereby ending the country’s hung parliament scenario. 

Some yen bears believe if the LDP controls both houses of parliament, Abe will be able to push through more reforms aimed at boosting domestic consumption. 

Hong Kong’s Hang Seng rose 0.44% while the Shanghai Composite inched up 0.14%. 

Australia’s S&P/ASX 200 traded slightly higher amid lethargic trade in the world’s 12th-largest economy. However, materials names were among the leaders there as BHP Billiton, the worlds’ largest mining company, said its second-quarter iron ore production rose to a record. That could indicate global commodities demand is beginning to turn for the better. 

New Zealand’s NZSE 50 rose 0.13%. South Korea’s Kospi jumped 0.88% on news foreign investors are wading back into stocks there. Foreign investors bought $128 million more of South Korean stocks than they sold in the first two days of this week, according to Bloomberg. Several global banks have recently sounded bullish tones on South Korean equities due to due compelling valuations. 

Data released earlier Wednesday showed South Korean producer prices fell 1.4% last month, good for the ninth straight month of declines.

Singapore’s Straits Times Index fell 0.17%. S&P 500 futures inched up 0.04% a day after the benchmark U.S. index fell 0.37%.

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Forex - USD/CHF steady, near 3-week lows

The U.S. dollar was steady against the Swiss franc on Wednesday, trading near three-week lows as investors awaited Federal Reserve Chairman Ben Bernanke's testimony to Congress later in the day. 

USD/CHF hit 0.9386 during European morning trade, the session low; the pair subsequently consolidated at 0.9387, easing 0.03%. 

The pair was likely to find support at 0.9320, the low of June 25 and resistance at 0.9494, Tuesday's high. 

Investors were eyeing Bernanke's testimony on monetary policy amid speculation over the timing of a possible reduction to the bank’s USD85 billion-a-month bond buying program.

The greenback fell sharply last week after Bernanke said the U.S. economy still needed monetary stimulus. 

Bernanke was expected to reiterate that the bank could start scaling back its asset purchase program by the end of this year if the economy continues to pick up, but interest rates will remain at record lows for the foreseeable future. 

In Switzerland, data showed that the ZEW economic expectations index rose to 4.8 in June, from a reading of 2.2 the previous month, disappointing expectations for an increase to 6.0. 

The Swissie was higher against the euro with EUR/CHF slipping 0.17%, to hit 1.2340. 

Later in the day, the U.S. was to release official data on building permits and housing starts.

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Copper drops 1% as dollar strengthens ahead of Bernanke

Copper futures came under heavy selling pressure on Wednesday, as the U.S. dollar strengthened ahead testimony on monetary policy by Federal Reserve Chairman Ben Bernanke later in the day.

On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.139 a pound during European morning trade, down 1.4% on the day.

New York-traded copper prices fell by as much as 1.5% earlier in the day to hit a session low of USD3.137 a pound.

Copper prices struggled for upside traction due to a broadly stronger U.S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.

The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.2% to trade at 82.80.

Market participants looked ahead to Bernanke's testimony on monetary policy amid speculation over the timing of a possible reduction to the bank’s USD85 billion-a-month bond buying program.

Copper prices advanced 2.7% last week after Bernanke said the Fed will continue to maintain accommodative monetary policy for the foreseeable future.

Investors also looked ahead to the release of key U.S. data on housing starts and building permits later in the day. 

Any improvement in U.S. economic activity could scale back expectations for further easing, boosting the dollar and weighing on silver.

The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.

Elsewhere on the Comex, gold for August delivery shed 0.5% to trade at USD1,284.05 a troy ounce, while silver for September delivery fell 0.9% to trade at USD19.74 a troy ounce.

Moves in gold and silver this year have largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying program sooner-than-expected.

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