Gold Trades Lower as Dollar Rises After U.S. Retail Sales Fall More Than Expected
Gold futures fell for a second day early Tuesday as the dollar rose after U.S. retail sales fell more than expected last month while the Federal Reserve's policy committee begins its two-day meeting that is expected to leave interest rates unchanged.
Gold for August delivery was last seen down US$8.30 to US$3,409.00 per ounce.
U.S. retail sales fell by 0.9% in May, down from a rise of 1% in April and below the FactSet consensus estimate for a drop of 0.6%. Excluding auto purchases, sales fell 0.3%, after being flat last month and under expectations for a rise of 0.1%.
The drop is the latest statistic to show the U.S. economy is slowing, following lower than expected inflation data released last week. The Federal Open Market Committee will meet later on Tuesday, with the group expected to leave interest rates unchanged when the meeting ends on Wednesday afternoon. The CME Fedwatch tool shows a 99.8% probability the group will keep rates steady.
The dollar rose early, with the ICE dollar index last seen up 0.13 points to 98.14. Treasury yields fell, with the U.S. two-year note last seen paying 3.964%, down 1.9 basis points, while the yield on the 10-year note was down 2.8 points to 4.428%.
Source : MT Newswires
