Investing.com - Gold prices edged higher on Tuesday after a report showing that manufacturing activity in the New York region fell more sharply than expected this month fuelled concerns that the U.S. economic recovery is losing momentum.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery rose to session highs of $1,332.20 a troy ounce, and were last up 0.06% to $1,319.21.
Prices were likely to find support at $1,299.93 a troy ounce, the low from February 13 and resistance at $1,341.90, the high from October 31.
Gold edged higher after the Federal Reserve Bank of New York said its general business conditions index came in at 4.48 this month, down from a 20-month high of 12.51 in December. Analysts had expected the index to decline to 9.00.
Gold prices have been well-supported in recent weeks amid concerns that the U.S. economic recovery has lost momentum since the end of last year as inclement winter weather acted as a drag on growth.
Recent soft U.S. economic data has prompted some investors to wonder whether the Federal Reserve will slow the pace of reductions to its asset-buying stimulus program.
Gold has gained nearly 9% since the beginning of the year, following a 28% drop in 2013.
Sentiment on the precious metal was dented after the World Gold Council said Tuesday that global gold demand fell 15% in 2013, as outflows from physically backed exchange traded funds outweighed record consumer demand.
Demand for gold jewelry was up 17%, the World Gold Council said, and demand for gold bars and coins rose 28%.
The council also said China overtook India as the world’s largest market for gold. Chinese demand was up 4% in the final three months of 2013, while Indian consumers bought 16% less gold.
Elsewhere, silver for March delivery rose 0.99% to trade at $21.63 a troy ounce, while copper futures for March delivery were up 0.47% to trade at $3.28 a pound.