Gold Futures Settle Lower As Dollar Climbs

Despite disappointing economic data and weak stock markets, gold futures settled lower on Tuesday, giving back ground after recent gains, as the dollar firmed against most of its major rivals.

The dollar index climbed to 93.17, gaining about 0.6% over Monday’s close, amid geopolitical concerns and continued spikes in coronavirus cases in several countries.

Gold futures for December ended down by $2.00 or about 0.1% at $1,787.80 an ounce.

Silver futures for September ended lower by $0.132 at $23.659 an ounce, while Copper futures for September settled at $4.2060 per pound, down $0.1210 from the previous close.

Data released by the Commerce Department showed U.S. retail sales tumbled by 1.1% in July after climbing by an upwardly revised 0.7% in June. Economists had expected retail sales to dip by 0.3% compared to the 0.6% increase originally reported for the previous month.

Excluding a steep drop in sales by motor vehicles and parts dealers, retail sales fell by 0.4% in July after jumping by 1.6% in June. Ex-auto sales were expected to inch up by 0.1%.

Meanwhile, industrial production in the U.S. increased by much more than expected in the month of July, according to a report released by the Federal Reserve on Tuesday.

The Fed said industrial production advanced by 0.9% in July after edging up by a downwardly revised 0.2% in June. Economists had expected industrial production to rise by 0.4%, matching the increase originally reported for the previous month.

The report showed manufacturing output surged up by 1.4% in July after dipping by 0.3% in June, reflecting an 11.2% spike in the production of motor vehicles and parts.

Source: Read Full Article