Investing.com - Gold futures declined on Tuesday, falling to a two-day low as upbeat U.S. retail sales data boosted the U.S. dollar and further diminished expectations for a third round of U.S. monetary easing from the Federal Reserve.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,690.45 a troy ounce during U.S. morning trade, shedding 0.55%.
It earlier fell by as much as 0.85% to trade at a two-day low of USD1,684.05 a troy ounce.
Gold futures were likely to find support at USD1,677.55 a troy ounce, the low from March 9 and short-term resistance at USD1,714.15, Monday’s high.
Official data released earlier showed that U.S. retail sales rose to the highest level in five months in February, increasing by a seasonally adjusted 1.1%, in line with expectations.
Core retail sales, which exclude automobile sales, rose by 0.9% last month, above expectations for a 0.8% gain.
The robust data further dampened expectations for a third round of monetary stimulus by the Fed, prompting investors to unwind long positions.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.45% to trade at 80.65, the highest since January 19.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Traders now shifted their attention to the outcome of a Federal Reserve policy meeting later in the day, with investors alert for any change in the central bank’s easing stance.
HSBC Holdings said in a report earlier that, “If there are no announced changes to the Fed program, then the Fed statement is unlikely to have any obvious implications for the U.S. dollar. This would also mean that the FOMC meeting is likely to have little effect on gold.”
Last week, the Wall Street Journal reported that the Fed is considering a strategy that would allow it to undertake another round of bond buying, while lowering the risk of inflation.
Meanwhile, jitters over Greece’s debt crisis subsided after euro zone finance ministers indicated that the debt-strapped country would receive formal approval for its second bailout early this week.
However, concerns that the debt crisis in the euro zone could flare up again lingered as Spain faced calls from European leaders to make deeper budget cuts, after the country’s prime minister raised the deficit target earlier this month.
Elsewhere on the Comex, silver for May delivery dipped 0.3% to trade at USD33.32 a troy ounce, while copper for May delivery jumped 1.3% to trade at USD3.888 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,690.45 a troy ounce during U.S. morning trade, shedding 0.55%.
It earlier fell by as much as 0.85% to trade at a two-day low of USD1,684.05 a troy ounce.
Gold futures were likely to find support at USD1,677.55 a troy ounce, the low from March 9 and short-term resistance at USD1,714.15, Monday’s high.
Official data released earlier showed that U.S. retail sales rose to the highest level in five months in February, increasing by a seasonally adjusted 1.1%, in line with expectations.
Core retail sales, which exclude automobile sales, rose by 0.9% last month, above expectations for a 0.8% gain.
The robust data further dampened expectations for a third round of monetary stimulus by the Fed, prompting investors to unwind long positions.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.45% to trade at 80.65, the highest since January 19.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Traders now shifted their attention to the outcome of a Federal Reserve policy meeting later in the day, with investors alert for any change in the central bank’s easing stance.
HSBC Holdings said in a report earlier that, “If there are no announced changes to the Fed program, then the Fed statement is unlikely to have any obvious implications for the U.S. dollar. This would also mean that the FOMC meeting is likely to have little effect on gold.”
Last week, the Wall Street Journal reported that the Fed is considering a strategy that would allow it to undertake another round of bond buying, while lowering the risk of inflation.
Meanwhile, jitters over Greece’s debt crisis subsided after euro zone finance ministers indicated that the debt-strapped country would receive formal approval for its second bailout early this week.
However, concerns that the debt crisis in the euro zone could flare up again lingered as Spain faced calls from European leaders to make deeper budget cuts, after the country’s prime minister raised the deficit target earlier this month.
Elsewhere on the Comex, silver for May delivery dipped 0.3% to trade at USD33.32 a troy ounce, while copper for May delivery jumped 1.3% to trade at USD3.888 a pound.