Gold futures ended slightly lower on Tuesday, as uncertainties in the ongoing geopolitical tensions in Ukraine continued with pro-Russian separatists now seeking to become a part of Russia, after claiming victory in a referendum for self-rule last week end. Investors also weighed after some disappointing economic data from the U.S. with retail sales and business inventories falling short of expectations. Retail sales in the U.S. moved up less than expected in April, after reporting a sharp increase in in the previous month, a Commerce Department report showed Tuesday. Meanwhile, business inventories in the U.S. improved in March on a notable increase in business sales, but was just short of economist estimates, a Commerce Department report showed.
Gold for June delivery, the most actively traded contract, dropped $1.00 percent to close at $1,294.80 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday. Gold for June delivery scaled an intraday high of $1,299.00 and a low of $1,289.10 an ounce. On Monday, gold futures ended higher, snapping a four-session losing streak, as investors sought the safe haven of the precious metal amid concerns over the unrest in Ukraine. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, declined to 780.46 tons on Tuesday from its previous close of 782.85 tons.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.16 on Tuesday, up from its previous close of 79.89 late Monday in North American trade. The dollar scaled a high of 80.18 intraday and a low of 79.86. The euro traded lower against the dollar at $1.3699 on Tuesday, as compared to its previous close of $1.3757 late Monday in North America. The euro scaled a high of $1.3771 intraday and a low of $1.3690. In economic news from the U.S., retail sales rose just 0.1 percent in April, a Commerce Department report showed. Economists expected retail sales to rise 0.4 percent month-over-month in April. Excluding the auto sector, retail sales came in unchanged in April compared to a 1.0 percent increase in March.
Business inventories rose 0.4 percent in March following an upwardly revised 0.5 percent increase in February, another report from the Commerce Department showed. Economists expected inventories to rise 0.5 percent. The report showed a significant increase in inventories at merchant wholesalers, which jumped by 1.1 percent in March after climbing by 0.7 percent in February.
Meanwhile, import prices declined by a seasonally adjusted 0.4 percent in April after a revised 0.4 percent gain in March, the U.S. Labor Department said. Export prices declined 1.0 percent in April. The consensus estimate called for a 0.2 percent month-over-month increase in export prices and a 0.4 percent increase in import prices.
Source: RTT Staff Writer
source:Bullion Bulletin