Gold futures fell on Tuesday because investors locked in profits from seven weeks high of the previous session, but the losses remained restricted by the weak US dollar and amid rising expectations that the Federal Reserve will not raise rates interest this year.
Gold for December delivery on the Comex shed $4.50, or 0.39%, to trade at $1,160.30 a troy ounce. Globally, gold fell 0.5% to $1,157.95 an ounce in Singapore.
Precious metals prices have been well supported in recent sessions in the midst of reduced expectations that the US Federal Reserve will increase interest rates before year end.
Delayed in enhancing interest rates would be viewed as bullish for gold, because it lowers the relative cost of holding the metal, that does not provide investors any guaranteed payment like.
The dollar index, which measures fortress greenback versus a trade-weighted basket of six major currencies, fell to a three-week low of 94.65.
The investors were seeking forward US economic reports on retail sales and inflation later in the week for more clues on the future trajectory of interest rates.
At the Multi Commodity Exchange, gold for delivery in December was trading lower by Rs 145, or 0.54%, at Rs 26,643 per 10 grams as bullion participants trimmed their positions, largely in line with a weak trend overseas.
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