Gold slips but silver ekes out marginal gain

Gold ends at nine week lows

It was a mixed finish for bullion metals on Tuesday, 22 April 2014. Gold prices ended the U.S. day session moderately lower and hit a nine-week low on Tuesday. A rally in U.S. equities lured investors away from the precious metal as they assessed a batch of mixed U.S. economic data and continued to watch developments in Ukraine.

Gold for June delivery fell $7.40, or 0.6%, to settle at $1,281.10 an ounce on the Comex division of the New York Mercantile Exchange. Prices have already lost more than 1%, or about $15 an ounce, over the past two trading sessions.

May silver tacked on a cent to end at $19.36 an ounce.

U.S. economic data released Tuesday included the monthly house price index, existing home sales and the Richmond Fed business survey. The home sales data was a bit better than expected, which lifted the U.S. dollar index slightly, which was in turn slightly bearish for gold.

In overnight news, Asian and European stock markets were quieter and traded mixed to mostly firmer amid no major, fresh fundamental news to move prices.

Reports Tuesday said China's central bank has announced it is reducing its reserve requirement ratio for its rural commercial banks. This move is an easing of monetary policy to try to stimulate this sector of the Chinese economy. Major banks in urban areas of China were not included in the move. Traders and investors are awaiting key Chinese economic data due out Wednesday: the HSBC April manufacturing PMI for China. Recent China economic data has been mostly downbeat by not meeting market expectations.

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