Investing.com - Gold prices edged lower in U.S. trading on
Tuesday after investors shrugged off sluggish U.S. retail sales and
avoided the yellow metal on expectations for the European Central
Bank to loosen policy in June, which sent the U.S. dollar
Gold and the dollar tend to trade inversely with one
On the Comex division of the New York Mercantile Exchange, gold
futures for June delivery traded at 1,293.70 a troy ounce during
U.S. trading, down 0.16%, up from a session low of $1,289.20 and
off a high of $1,298.80.
The June contract settled up 0.64% at $1,295.80 on Monday.
Futures were likely to find support at $1,278.30 a troy ounce,
Monday's low, and resistance at $1,303.90, Monday's high.
The Wall Street Journal reported the German central bank
Bundesbank would back monetary easing measures, including a
negative rate on bank deposits and purchases of packaged bank
loans, if such tools were needed to keep persistently low levels of
inflation from becoming entrenched in the euro zone.
Last week, ECB President Mario Draghi said monetary authorities
were "comfortable" with acting at its next meeting in June after
reviewing the latest economic projections, and the euro fell on
sentiments that European monetary policy is set to loosen, which
strengthened the dollar and chipped away at demand for gold.
The single currency also came under pressure after data showed
that German economic sentiment slumped to a 16-month low in
The ZEW Centre for Economic Research reported that its index of
German economic sentiment dropped to 33.1 this month from 43.2 in
April. Analysts had expected a reading of 41.0.
The current conditions index improved to 62.1 from 59.5 in
April, ahead of expectations of 60.5.
Meanwhile in the U.S., soft retail sales numbers did little to
The Commerce Department reported earlier that U.S. retail sales
rose just 0.1% in April, missing expectations for a 0.4% increase.
Retail sales for March were revised up to a 1.5% gain from a
previously reported increase of 1.2%.
Core retail sales, which exclude automobile sales, were flat in
April, disappointing forecasts for a 0.6% increase. Core sales in
March were revised up to a rise of 1% from a previously reported
increase of 0.7%
Meanwhile, silver for July delivery was flat at $19.543 a troy
ounce, while copper futures for July delivery were down 0.64% at
$3.129 a pound.
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