Gold and silver fell off day's highs after stronger-than-expected US data released Tuesday morning in New York strengthened the greenback, losses in which had helped the metals rise to 1-week highs earlier in the day, but both metals were seen strongly supported above short-term SMA (Simple Moving Average).

Investors are now waiting for Fed's monetary policy review, due 7:15 pm GMT for more cues about the health of dollar as well as the recovery in the world's largest economy. Any move to expand the asset purchase by the central bank could weaken the dollar.

A study on charts shows that silver has been holding just above the 20-day SMA since end of August and those few attempts in October-November to break below the line proved unsuccessful.

At the same time, by the end of October, gold slipped below the 20-day SMA but has disciplined itself above the 50-day SMA so far.

At 3:35 GMT, spot gold was at $1,396.80 per ounce, off its intra-day high of $1,407.80, and from its previous close of $1,393.60. The yellow metal has strong support at $1,367.4 as suggested by the 50-day SMA and 23.6 percent Fibonacci retracement from 1,430.90 to 1,156.30.

Silver for immediate delivery was at $29.560 an ounce, falling from day's high of $29.970, compared with its previous close of $29.550. The white metal is seen supported at $28.15, as suggested by the 20-day SMA, which is just above the 23.6 percent Fibonacci retracement from 30.735 to 17.295.

Retail sales rose 0.8 percent on month in November, higher than market estimates around 0.6 percent.  November producer price index increased 0.8 percent, beating analysts' expectations of 0.5 percent rise.

The dollar index that tracks greenback's performance against majors jumped following the data, mainly helped by its gains against euro, pound and yen. At around 3:30 GMT, the index was at 79.48, off the day's low of 78.82 and compared with previous close of 79.28.

The yellow metal has strong support at $1,367.4 as suggested by the 50-day SMA and 23.6 percent Fibonacci retracement from 1,430.90 to 1,156.30.

 

The

The white metal is seen supported at $28.15, as suggested by the 20-day SMA, which is just above the 23.6 percent Fibonacci retracement from 30.735 to 17.295.