20.7 C
New York
Saturday, October 16, 2021

Gold Dipped on Mixed Economic Data


Gold prices turned lower Tuesday after a strong retail sales reading sparked buying interest in the USD and pushed Treasury yields higher.

Retail sales gained 0.4% in June, outpacing consensus forecasts for a meager 0.1% advance, the positive reading pushed the .DXY and bond yields higher.

The USD-denominated precious Yellow metal reacts negatively to a stronger Buck as it becomes more expensive for the holders of other currencies, while higher yields increase the opportunity cost of holding non-yielding gold.

Gold futures for August delivery on the COMEX division of the New York Merc, fell $2.30, or 0.1%, to $1,411.20 a troy ounce by 10:01a EDT (14:01 GMT). The precious Yellow metal had been trading higher ahead of the retail sales data but hit intra-day lows of $1,408.95 following the retail sales release.

The reading did little to change expectations for the Fed to cut rates at the end of the month, although it does support Fed Chairman Powell’s perception that consumer spending remains healthy in light of a strong labor market.

A later flat reading of US industrial production in June, missing even the forecast for weak growth of 0.1%, briefly pulled gold back from intra-day lows in a short-lived recovery.

The chief market strategist of the World Gold Council (WGC) said that “if gold is going to move, one thing that does concern me is that the speculators on COMEX remain very Long.

Stay tuned…

HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

Related Articles

Stay Connected

- Advertisement -spot_img

Latest Articles