Gold drops after Australian retail sales disappoint

Gold prices dropped in Asian trading on Wednesday as investors priced in weak Australian retail sales, which may have stoked demand for the safe-haven dollar.

Gold futures were likely to test support at USD1,655.75 a troy ounce, the low from January 28, and resistance at USD1,678.65, a high from Tuesday.

Australian retail sales were reported early Wednesday. The figure showed that, on a month-to-month basis, retail sales declined 0.2%, much less than the anticipated gain of 0.3%.

If the Australian economy is showing signs of weakness, demand for gold, widely seen as an inflation hedge, may be curtailed by investors seeking safety in a deflationary environment.

Crude oil posts modest decline on conflicting economic data

Oil prices dropped slightly in Asian trading on Wednesday as traders priced in conflicting economic data, with investors increasingly unsure of the state of the global economy.

On the New York Mercantile Exchange, oil futures for March delivery were down just 0.02% at USD96.62 per barrel in Asian trading, up from a session low of USD96.52 and down from a high of USD96.69 per barrel.

Natural gas prices soar as weather forecasts predict new winter blast

Natural gas futures shot up on Tuesday after weather forecasts predicted a fresh winter blast to grip the heavily populated central and eastern reaches of the U.S.

On the New York Mercantile Exchange, natural gas futures for delivery in March traded at USD3.385 per million British thermal units, up 2.13%.