Investing.com - Gold prices dipped in U.S. trading on Wednesday after U.S. retail sales beat expectations while European output figures disappointed, which sent the dollar gaining against the euro, often a recipe for falling gold prices.
Gold and the dollar tend to trade inversely from one another.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were down 0.33% at USD1,586.50 a troy ounce in U.S. trading on Wednesday, up from a session low of USD1,584.50 and down from a high of USD1,598.00 a troy ounce.
Gold futures were likely to test support USD1,574.60 a troy ounce, Monday's low, and resistance at USD1,1619.40, the high from Feb. 26.
The Commerce Department reported earlier that U.S. monthly retail sales jumped 1.1% in February, beating expectations for a 0.5% increase.
Core retail sales, which are stripped of automobiles, gasoline and building materials, rose by 1.0% compared to expectations for a 0.2% gain.
The numbers fueled already growing expectations for the Federal Reserve to start considering exit strategies for its monetary stimulus programs that weaken the greenback by design to spur recovery.
The retail sales figures came just days after the Bureau of Labor Statistics reported that the U.S. economy added 236,000 nonfarm payrolls in February, way more than an expected 160,000 increase.
The headline unemployment rate fell to 7.7% in February from 7.9% in January, beating analysts' calls for the rate to remain unchanged.
Elsewhere, official data revealed that the eurozone's industrial output fell 0.4% in January, outpacing market calls for a 0.1% decline.
Meanwhile in Italy, the country's Treasury sold EUR3.32 billion in three-year government bonds at an average yield of 2.48%, up from 2.30% at a similar auction last month, which weakened the euro.
The auction was the first since Fitch Ratings slapped a one-notch downgrade on Italy earlier this month.
Combined good news out of the U.S. and disappointing news out of Europe pushed gold prices lower.
Elsewhere on the Comex, silver for May delivery was down 0.80% and trading at USD28.938 a troy ounce, while copper for May delivery was down 0.72% and trading at USD3.529 a pound.
Gold and the dollar tend to trade inversely from one another.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were down 0.33% at USD1,586.50 a troy ounce in U.S. trading on Wednesday, up from a session low of USD1,584.50 and down from a high of USD1,598.00 a troy ounce.
Gold futures were likely to test support USD1,574.60 a troy ounce, Monday's low, and resistance at USD1,1619.40, the high from Feb. 26.
The Commerce Department reported earlier that U.S. monthly retail sales jumped 1.1% in February, beating expectations for a 0.5% increase.
Core retail sales, which are stripped of automobiles, gasoline and building materials, rose by 1.0% compared to expectations for a 0.2% gain.
The numbers fueled already growing expectations for the Federal Reserve to start considering exit strategies for its monetary stimulus programs that weaken the greenback by design to spur recovery.
The retail sales figures came just days after the Bureau of Labor Statistics reported that the U.S. economy added 236,000 nonfarm payrolls in February, way more than an expected 160,000 increase.
The headline unemployment rate fell to 7.7% in February from 7.9% in January, beating analysts' calls for the rate to remain unchanged.
Elsewhere, official data revealed that the eurozone's industrial output fell 0.4% in January, outpacing market calls for a 0.1% decline.
Meanwhile in Italy, the country's Treasury sold EUR3.32 billion in three-year government bonds at an average yield of 2.48%, up from 2.30% at a similar auction last month, which weakened the euro.
The auction was the first since Fitch Ratings slapped a one-notch downgrade on Italy earlier this month.
Combined good news out of the U.S. and disappointing news out of Europe pushed gold prices lower.
Elsewhere on the Comex, silver for May delivery was down 0.80% and trading at USD28.938 a troy ounce, while copper for May delivery was down 0.72% and trading at USD3.529 a pound.