Investing.com – Gold futures erased losses on Tuesday, bouncing off a two-day low as the U.S. dollar moderated some of its gains and as markets continued to monitor developments surrounding the euro zone’s debt crisis.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,785.75 a troy ounce during U.S. morning trade, gaining 0.41%.
It earlier rose by as much as 0.55% to trade at a daily high of USD1,787.05 a troy ounce.
The U.S. dollar moderated gains after the U.S. Commerce Department said earlier that retail sales rose more-than-expected in October, increasing 0.5%, while core retail sales also beat expectations, climbing 0.6%.
A separate report from the Federal Reserve Bank of New York showed that manufacturing activity in the New York-region expanded for the first time in six months in November.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, gained 0.47% to trade at 78.01, after being up by as much as 0.7% earlier.
Gold prices found further support after the U.S. Labor Department reported U.S. wholesale prices in October dropped at the fastest monthly pace since February 2010, easing by 0.3%.
The decline potentially gives the Federal Reserve more leeway to introduce further stimulus measures to boost the U.S. economy.
Chicago Federal Reserve Bank President Charles Evans said earlier that the Fed should continue to use an accommodative policy until inflation reaches 3% and the unemployment rate falls below 7%.
Gold prices traded lower during the Asian trading session as fears that the euro zone’s sovereign debt crisis is worsening prompted investors to sell their gold positions to raise liquidity and cover losses elsewhere.
Italy's 10-year bond yields rose to near unsustainable levels, climbing above 7%, while Spanish 10-year yields rose above 6% for the first time since the European Central Bank started to buy the country's bonds in August.
Global financial service provider HSBC said in a report earlier that, “Gold has persistently derived safe haven-related purchases from the euro zone sovereign debt crisis.”
However, gains have been limited as safe haven inflows “have been largely offset by currency-related selling of gold due to a weaker euro.”
Elsewhere on the Comex, silver for December delivery rallied 1.74% to trade at USD34.61 a troy ounce, while copper for December delivery edged 0.2% higher to trade at USD3.495 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,785.75 a troy ounce during U.S. morning trade, gaining 0.41%.
It earlier rose by as much as 0.55% to trade at a daily high of USD1,787.05 a troy ounce.
The U.S. dollar moderated gains after the U.S. Commerce Department said earlier that retail sales rose more-than-expected in October, increasing 0.5%, while core retail sales also beat expectations, climbing 0.6%.
A separate report from the Federal Reserve Bank of New York showed that manufacturing activity in the New York-region expanded for the first time in six months in November.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, gained 0.47% to trade at 78.01, after being up by as much as 0.7% earlier.
Gold prices found further support after the U.S. Labor Department reported U.S. wholesale prices in October dropped at the fastest monthly pace since February 2010, easing by 0.3%.
The decline potentially gives the Federal Reserve more leeway to introduce further stimulus measures to boost the U.S. economy.
Chicago Federal Reserve Bank President Charles Evans said earlier that the Fed should continue to use an accommodative policy until inflation reaches 3% and the unemployment rate falls below 7%.
Gold prices traded lower during the Asian trading session as fears that the euro zone’s sovereign debt crisis is worsening prompted investors to sell their gold positions to raise liquidity and cover losses elsewhere.
Italy's 10-year bond yields rose to near unsustainable levels, climbing above 7%, while Spanish 10-year yields rose above 6% for the first time since the European Central Bank started to buy the country's bonds in August.
Global financial service provider HSBC said in a report earlier that, “Gold has persistently derived safe haven-related purchases from the euro zone sovereign debt crisis.”
However, gains have been limited as safe haven inflows “have been largely offset by currency-related selling of gold due to a weaker euro.”
Elsewhere on the Comex, silver for December delivery rallied 1.74% to trade at USD34.61 a troy ounce, while copper for December delivery edged 0.2% higher to trade at USD3.495 a pound.