Gold ends at lowest levels in six weeks

Prices pressured in part by a strength in the U.S. dollar

Bullion metals ended lower on Wednesday, 26 March 2014 at Comex. Gold futures fell on Wednesday to their lowest settlement in nearly six weeks, pressured in part by a strength in the U.S. dollar, but the metal found support at $1,300 an ounce on signs of strong demand from China and indications the European Central Bank may support more economic stimulus measures.

Gold for April delivery fell $8, or 0.6%, to settle at $1,303.40 an ounce on the Comex division of the New York Mercantile Exchange after a session low of $1,300.90.

May silver shed 20 cents, or 1%, to $19.78 an ounce. Prices for the white metal have now fallen for eight-straight sessions

This week has not seen any major, markets-moving geopolitical developments and few major economic data points. In overnight news, Federal Reserve Bank of St. Louis president James Bullard said the U.S. economy continues to improve and said he sees U.S. unemployment below 6% by the end of this year. Amid the lack of major headline economic data points so far this week, focus of the market place has been on world central banks and their monetary policies. European stocks rallied in part Wednesday on ideas the European Central Bank will soon embark on further monetary policy stimulus due to concerns about deflation. And recent downbeat economic data from China has the market place buzzing that China monetary officials could also loosen money policy to help stimulate the world's second-largest economy.

Among economic reports expected at Wall Street, durable goods orders increased 2.2% in February after falling a downward revised 1.3% (from -1.0%) in January. The consensus expected durable goods orders to increase 1.0%. The upward headline surprise does not represent a strengthening in demand from the manufacturing sector. A 6.9% increase in transportation goods provided most of the increase in February demand. Excluding transportation, durable goods orders increased a minor 0.2% in January. Separate report showed that the weekly MBA Mortgage Applications Index fell 3.5% to follow last week's uptick of 0.2%.

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