Investing.com - Gold futures moved further away from a four-week high struck in the previous session on Wednesday, as market players looked ahead to the release of key U.S. data later in the session for further indications on the strength of the economy and the future path of monetary policy.
On the Comex division of the New York Mercantile Exchange, gold for December delivery traded at $1,223.70 a troy ounce during European morning hours, down $10.50, or 0.85%.
Comex gold prices rallied to $1,238.60 on Tuesday, the highest since September 17, before trimming gains to end at $1,234.30, up $4.30, or 0.35%.
Futures were likely to find support at $1,205.10, the low from October 8, and resistance at $1,238.60, the high from October 14.
Also on the Comex, silver for December delivery tumbled 28.5 cents, or 1.64%, to trade at $17.11 a troy ounce.
The Commerce Department is expected to report that retail sales fell by 0.1% in September, after rising 0.6% in August.
The U.S. is also to release data on producer prices and manufacturing activity in the New York region.
Gold prices rallied to a four-week high on Tuesday amid speculation weaker than expected global economic growth and its effect on the U.S. economy may lead the Federal Reserve to push back interest-rate increases.
A delay in raising interest rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.
Elsewhere in metals trading, copper for December delivery lost 1.7 cents, or 0.56%, to trade at $3.073 a pound.
Official data released earlier showed that Chinese inflation for September slowed to 1.6% on-year from 2.0% in August, below expectations for a reading of 1.7%.
The weaker than expected data underlined concerns about China's economy and sparked speculation policymakers in Beijing will have to introduce fresh stimulus to meet the government's 7.5% growth target.
China is the world's largest copper consumer, accounting for nearly 40% of global demand.