Investing.com - Gold prices dropped in U.S. trading on Monday after stronger-than-expected U.S. retail sales sparked demand for the dollar, which tends to trade inversely from the yellow metal.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were down 0.21% at USD1,433.65 a troy ounce in U.S. trading on Monday, up from a session low of USD1,424.95 and down from a high of USD1,448.05 a troy ounce.
Gold futures were likely to test support USD1,418.65 a troy ounce, Friday's low, and resistance at USD1,475.55, Wednesday's high.
The Commerce Department reported earlier that U.S. retail sales rose 0.1% in April, defying expectations for a 0.3% decline. March's figure was revised down to a 0.5% contraction from a 0.4% contraction.
Core retail sales, which exclude automobile sales, fell by 0.1% last month, in line with expectations.
The numbers sparked talk that the Federal Reserve may be closer to scaling back stimulus programs, especially its USD85 billion monthly bond-buying program, which weaken the dollar to spur recovery.
Improving weekly jobless claims in the U.S. as well as a better-than-expected April jobs report have also fueled talk the Fed may continue slowing the pace of its bond-buying later this year.
Elsewhere on the Comex, silver for July delivery was up 0.15% at USD23.693 a troy ounce, while copper for July delivery was up 0.21% and trading at USD3.360 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were down 0.21% at USD1,433.65 a troy ounce in U.S. trading on Monday, up from a session low of USD1,424.95 and down from a high of USD1,448.05 a troy ounce.
Gold futures were likely to test support USD1,418.65 a troy ounce, Friday's low, and resistance at USD1,475.55, Wednesday's high.
The Commerce Department reported earlier that U.S. retail sales rose 0.1% in April, defying expectations for a 0.3% decline. March's figure was revised down to a 0.5% contraction from a 0.4% contraction.
Core retail sales, which exclude automobile sales, fell by 0.1% last month, in line with expectations.
The numbers sparked talk that the Federal Reserve may be closer to scaling back stimulus programs, especially its USD85 billion monthly bond-buying program, which weaken the dollar to spur recovery.
Improving weekly jobless claims in the U.S. as well as a better-than-expected April jobs report have also fueled talk the Fed may continue slowing the pace of its bond-buying later this year.
Elsewhere on the Comex, silver for July delivery was up 0.15% at USD23.693 a troy ounce, while copper for July delivery was up 0.21% and trading at USD3.360 a pound.