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Gold Prices Slip on Strong Earning Reports and U.S. Housing Data

Published 04/24/2019, 01:45 AM
© Reuters.
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Investing.com - Gold prices slipped on Wednesday in Asia, pressured by strong earning reports stateside and strong U.S. housing data released overnight.

Gold futures for June delivery, traded on the Comex division of the New York Mercantile Exchange, were down 0.1%, at $1,271.75 per ounce by 1:40 AM ET (05:40 GMT).

A wave of better-than-expected earnings results from U.S.-listed companies including Hasbro (NASDAQ:HAS), Twitter and Coco-Cola supported risk sentiment and put pressure on safe-haven gold.

Strong U.S. housing data also dampened concerns about an economic slowdown in the country.

Overnight, the Commerce Department said new home sales rose 4.5% to a seasonally adjusted annual rate of 692,000 units last month, the highest level since November 2017. That was well above economists’ forecasts for a decline to 647,000 units.

“The safe-haven metals continue to be hamstrung by not much risk aversion in the world marketplace and by a strong U.S. dollar on the foreign exchange market,” said Jim Wyckoff, senior analyst at Kitco.com, in a MarketWatch report.

Elsewhere, traders also pay close attention to the latest development on the Sino-U.S. trade front, as the two sides were reportedly closing in on a potential trade agreement.

Officials from the U.S. will travel to Beijing next Tuesday for a new round of talks, the White House said. That will be followed by more negotiations in Washington a week after the talks in Beijing conclude, the White House added.

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