Gold Futures Prices Erased Losses After U.S. Retail Sales Disappoint

Gold Futures Prices Erased Losses After U.S. Retail Sales Disappoint

Prices of gold futures deleted the losses on Tuesday after US retail sales data showed an unexpected drop in June, while core sales have also lost estimates, damping optimism about the economic strength and outlook for U.S. higher interest rates.

On the Comex Gold futures for August delivery tacked on $1.10, or 0.1%, to trade at $1,156.50 a troy ounce.

Gold merchants were reluctant to take action before the testimony this week from Janet Yellen that can provide further details on the timing of increases in interest rates in the United States.

Last week, the Fed chairman Yellen said that the central bank is on course to raise interest rates at some later this year, but cautioned against weakness in the labor market.

The United States Department of Commerce, said retail sales fell by a seasonally adjusted 0.3% last month, on disappointing expectations for a profit of 0.2% after a 1.0% increase in May.

Underlying retail sales, that exclude sales of cars, fell by a seasonally adjusted 0.1% in June, compared with estimates for a rise of 0.5% after rising 0.8% in the previous month.

The weak report stoked health concerns of the American economy and wetted expectations of higher interest rates.

With reached agreement on Greek debt, investors are switching back to focus on higher US rates, which to slow down the attraction of precious metal because it does not pay interest or provide other income assets such as bonds and stocks. Gold has fallen by around 2 percent this year as the economy gains prompted the case for decision makers to tighten monetary policy.

Investors raised holdings in gold-backed exchange-traded products for the first time in four sessions, according to data compiled by Bloomberg. Total assets grew 1.7 metric tons to 1586.9 tons as of Monday, which is close to the lowest levels since 2009 yet.

Also on Tuesday, at the Multi Commodity Exchange, Gold prices were trading lower. MCX Gold October contract was trading at Rs 26219 down Rs 40, or 0.15 percent.

For Commodity Market Tips, MCX Live Tips, Gold-Silver Prices and trading market latest news & updates  with 100McxTips, follow us on Twitter @100mcxtips and Like on Facebook.  And to contact the reporter on this story email at or Call: +91-761-4012307

MCX Commodity Tips


MCX Commodity Tips is an experienced Commodity Research Advisory to predict investors buying and trading trends at various market environments. For free trial advisory on commodity Gold, Silver, Crude, Copper and all Indian Commodities kindly visit us and submit an query form at commodity free trial tips here.

Posted in Commodity, MCX, Stocks Market

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

Free Crude Oil Tips
Free Trial Crude Trading Tips
Contact & Visit Info
M-Sat : 10am - 7pm

Error: Twitter did not respond. Please wait a few minutes and refresh this page.

NG Trading Tips
Free Trial Commodity Tips
Disclaimer: 100McxTIps would like to remind you that the data contained in this website is not necessarily real-time nor accurate. Bulloin Futures prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore 100McxTips doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .
%d bloggers like this: