Gold falls as U.S. retail sales beat expectations, eurozone data weighs
Published Mar 13, 2013 01:24PM ET
Gold and the dollar tend to trade inversely from one another.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were down 0.33% at USD1,586.50 a troy ounce in U.S. trading on Wednesday, up from a session low of USD1,584.50 and down from a high of USD1,598.00 a troy ounce.
Gold futures were likely to test support USD1,574.60 a troy ounce, Monday's low, and resistance at USD1,1619.40, the high from Feb. 26.
The Commerce Department reported earlier that U.S. monthly retail sales jumped 1.1% in February, beating expectations for a 0.5% increase.
Core retail sales, which are stripped of automobiles, gasoline and building materials, rose by 1.0% compared to expectations for a 0.2% gain.
The numbers fueled already growing expectations for the Federal Reserve to start considering exit strategies for its monetary stimulus programs that weaken the greenback by design to spur recovery.
The retail sales figures came just days after the Bureau of Labor Statistics reported that the U.S. economy added 236,000 nonfarm payrolls in February, way more than an expected 160,000 increase.
The headline unemployment rate fell to 7.7% in February from 7.9% in January, beating analysts' calls for the rate to remain unchanged.
Elsewhere, official data revealed that the eurozone's industrial output fell 0.4% in January, outpacing market calls for a 0.1% decline.
Meanwhile in Italy, the country's Treasury sold EUR3.32 billion in three-year government bonds at an average yield of 2.48%, up from 2.30% at a similar auction last month, which weakened the euro.
The auction was the first since Fitch Ratings slapped a one-notch downgrade on Italy earlier this month.
Combined good news out of the U.S. and disappointing news out of Europe pushed gold prices lower.
Elsewhere on the Comex, silver for May delivery was down 0.80% and trading at USD28.938 a troy ounce, while copper for May delivery was down 0.72% and trading at USD3.529 a pound.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.