Gold slides again in Asia after rebounding in U.S.

                       Gold futures are again trading to the downside in the early part of Wednesday’s Asian session after rebounding during Tuesday’s U.S. session as traders resist the temptation to go bargain-hunting with the yellow metal. 

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery slid 1.26% to USD1,369.85 per troy ounce in Asian trading Wednesday after settling up 1.64% at USD1,383.45 a troy ounce in U.S. trading on Tuesday. 

Gold futures were likely to test support USD1,322.25 a troy ounce, the earlier low, and resistance at USD1,494.95, Monday's high. 

The yellow metal rebounded in the U.S. Tuesday following its worst one-day performance in 30 years, but Tuesday’s gains were modest in comparison to Monday’s plunge that took bullion to a new two-year low. Economic data points published in the U.S. Tuesday were decent though not spectacular and that may have kept skittish traders from more fully embracing precious metals. 

In U.S. economic news, the U.S. Labor Department said the consumer price index fell 0.2% last month after a 0.7% increase in February. Excluding volatile food and energy prices, the CPI rose 0.1% last month. 

The U.S. Census Bureau said housing starts increased 7% last month from February to a 1.036 million seasonally adjusted annual rate. That is the first time in nearly five years monthly housing starts have eclipsed 1 million. In March, building permits fell 3.9% from February, to a 902,000 annual rate. 

Following an unprecedented 12-year bull market, gold is off 20% this year and residing in bear market territory. On Monday, Bank of America Merrill Lynch said bullion could fall to US1,200 per ounce. 

Elsewhere, Comex silver for May delivery fell 1.04% to USD23.383 per ounce while copper for May delivery rose 0.10% to USD3.307 per ounce.
Courtesy : Investing.com