Gold edged down on Wednesday on a firmer dollar. But the upward potential is limited on emerging selling positions from some EFTs. Bullion is expected to remain rangebound in the next one or two weeks. Spot gold was down 0.2 percent at $1,265.80 an ounce, below Tuesday's high of $1,273.97, the highest since June 14. A gauge of U.S. manufacturing activities fell from an almost three-year high as new orders slowed and consumer spending stagnated, suggesting moderate growth in the third quarter. Investors worried about the chances of the Federal Reserve raising interest rates in the coming months, unless seeing more signs of rising inflation.
On chart, gold is under mounting pressure, suggesting little likelihood for a breakthrough, and rising chances of pullback. The prices are expected to breach below the support of $1,264 to the next support of $1,255.
Silver fell 0.6 percent to $16.60 an ounce on Wednesday, extending losses to the third consecutive day after hitting the highest since June 29. Technically, silver found support at $16.50. A breach below $16.55 would trigger a downtrend in the medium term.

 
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