Gold prices fall on strong US economic data ahead of Fed chief’s speech

Gold slipped on Tuesday following strong US economic readings while traders awaited a speech from Federal Reserve Chairman Jerome Powell and more data that could signal future interest rate hikes.

Spot gold was down 0.6% to $1,911.53 an ounce as of 2:08 p.m. EDT (1808 GMT), while US gold futures were down 0.5% at $1,923.80.

U.S. consumer confidence rose in June to its highest level in nearly 1-1/2 years, while sales of new single-family homes rose a more than expected 12.2% in May.

“Gold didn’t like the news, as better economic data will drive Fed tightening expectations and that should push yields up,” said Edward Moya, senior market analyst at OANDA.

Benchmark 10-year Treasury yields rose, making zero-interest gold less attractive. [US/]

Bullion gained on Monday due to the risk of a short-term rebellion in Russia.

But for gold, “the main question is to what extent internal tensions within Russia or a possible collapse of the government could impact global monetary policy,” analysts at Commerzbank wrote in a note.

Gold has declined about 2.6% this month – setting itself on course for a second straight monthly decline if losses persist – as bets on prolonged high US interest rates reduced the appeal of zero-yielding assets and To some extent, it has eliminated its traditional safe-asset role.

Investors were looking forward to key economic data on Thursday as well as Powell’s upcoming speech.

“Between now and Thursday, you’re going to see a drifting, no-man’s-land trading, sideways trading here in gold, unless something else is going to break,” said Bob Haberkorn, senior market strategist at RJO Futures. “

Silver rose 0.1% to $22.79 an ounce and is bound for a third straight session of gains.

Platinum was down 0.2% at $922.78 and palladium was down 0.6% at $1,297.89.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – reuters,